It leads to a more liquid market where money moves more quickly. In times where liquidity is needed rapidly, thinly securitized markets have their downsides, though they tend to be more safe and less volatile. In such cases the strength of the balance sheet is more important than changes in the market value of deposit institutions.
2/3  BIS central bankers' speeches  Physical risk refers to the direct threat of the pandemic to human life and society. This may include increased mortality and susceptibility to other diseases. Transition risks, on the other hand, arise from the inevitable shift of the economy towards minimal or contactless systems and processes to minimize the transmission of the disease.