To illustrate this point, suppose that the private financial institutions, for some reason, switched from direct settlements via BOJ accounts to indirect settlements using private clearing systems given the introduction of RTGS. The total amount of risks in the payment and settlement systems as a whole would not decrease if there were inadequate management of risks in the private systems.
The sovereign debt crisis in Europe has intensified, conditions in international financial markets have tightened, and risk aversion has risen. The recession in Europe is now expected to be deeper and longer than previously anticipated.   The Bank continues to assume that European authorities will implement sufficient measures to contain the crisis, although this assumption is clearly subject to downside risks.