"Public debt holdings will not be classified as risky assets in the examination of the asset quality review of the European banks to be conducted by the European Central Bank (ECB), ECB governing council member Yves Mersch said Monday. However, Mersch said no decision has yet been taken on the treatment of public debt in the stress tests to which Europe’s banks will also be subjected. The Bundesbank has proposed that in the medium term public debt should not be classified under the risk-free asset heading." (Quoted from article)