We must keep a constant check on whether we have taken the systemic interactions between the various pillars of the international financial architecture into consideration in an appropriate manner. Much remains to be done in this regard and, as I already said, this is no time for complacency.
As liabilities of the borrower are the assets of the lender, the inability of the borrower to pay its liabilities will reduce the value of the assets of the lender thereby impacting their ability to repay their creditors, which primarily includes depositors in the case of banks.