Zero Hedge http://www.zerohedge.com/news/2013-04-09/italian-bank-holdings-italian-debt-rise-all-time-high explains a particularly ridiculous result of ECB rules.
'... courtesy of ECB generosity, Italian debt continues to be "cash good collateral" with the ECB, and as a result Italian banks can't wait to pledge and repo it with Mario Draghi in exchange for virtually full cash allottment. In other words, the more debt the Italian Tesoro issues, the more fungiblecash the Italian banks have to spend on such things as padding up their cap ratios and making their balance sheets appear like medieval (any refernce to Feudal Europe is purely accidental) fortresses.'
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