Central banks have conducted monetary easing measures, and their responses have two things in common. One is providing support for financing to firms and sole proprietors affected by COVID-19 so that they can sustain their businesses. The other is maintaining stability in financial markets in order to prevent a vicious cycle between turmoil in the markets and deterioration in the real economy.
After coming through the last financial crisis in generally stronger condition than larger banks, smaller institutions had strengthened their capital positions and substantially improved asset quality in the years since, leaving them better positioned to deal with the current stress related to the pandemic.