As only profitable banks can reliably serve the economy, weak banks are indeed a concern. The third risk is that markets might again doubt the ability of public and private borrowers to service their debt. And finally, there are liquidity risks in the non-bank sector which might spill over into the entire financial system.
New CMBS issuance came to a halt as risk spreads widened to prohibitively high levels in response to the increase in CREspecific risk and the general lack of liquidity in structured debt markets. Increases in credit risk have significantly softened demand in the secondary trading markets for all but the most highly rated tranches of these securities.