The change would also allow stronger domestic and foreign insurers to invest in weaker peers.

This could go some way to insulating stronger eastern European economies from contagion arising from weaker peers.

Stronger countries will cushion the economic pain felt by weaker peers, reducing the risk of a country quitting the euro zone.

But at least SBI can concentrate on growth without being forced to absorb weaker peers, as the government eyes fewer, stronger state banks.