(i)  Inadequately capitalized banks  In 2008, major banks in the United States, the United Kingdom and continental Europe either failed or were publicly rescued, in large part because they had insufficient levels of good-quality capital to absorb the losses incurred from taking on too much credit risk.
Although it moderated in the following year, i.e., 2021-22 to 5.5 per cent and was projected to ease further to 4.5 per cent in 2022-23 as recently as February 2022, the war in Ukraine has altered the outlook drastically.