Banks will face a deteriorating loan portfolio and will spend most of their time with a) refinancing or restructuring problematic debt, b) provide fresh loans to government c) cut back operating costs and d) hoard substantial amount of liquidity as a precautionary measure.
Illiquidity in the economy will increase substantially, partly also due to much faster submission of promissory notes for early payment by creditors. As there is no chapter 11 type of creditors’ protection scheme, the  BIS Review 51/2009  1  number of bankruptcies will increase as well. Interest rates will remain high despite the fact that central banks will lower reference rates.