This will help to ensure that a potential CCP emergency can be addressed in a swift, orderly and comprehensive manner, thereby limiting potential wider systemic contagion effects. One area where further progress is still needed relates to the enhanced consideration of interdependencies between CCPs and major financial institutions in identifying cross-sectoral vulnerabilities and contagion channels.
If times were more typical, we would expect a smooth transmission in which lower interest rates would fuel credit expansion that would be used to finance expanding payrolls, capital investment, inventories, and other short-term operating expenses.