If it is likely that the problem is not a pure liquidity problem but a solvency problem from a system-wide perspective, there would be various challenges in carrying out policy responses in a timely manner.
In such a case, while the central bank prevents the financial system from further destabilizing through aggressive liquidity provision, the financial institutions should identify their incurred losses and need to cover the capital shortages in the market, and the government ought to carry out public capital injection when the capital raising turns out to be insufficient.