Faced with either variant of such a devastating impact on the system, government authorities often believe they have little choice but to intervene. The government may provide funds or guarantees to the bank in order to keep it functioning.
Global financial and capital markets have become unstable rapidly since late February, as seen globally in deterioration in investors' risk sentiment and a plunge in stock prices. Prices of credit assets including CP and corporate bonds have declined significantly, thereby exerting a considerable impact on corporate financing, mainly in countries with a large proportion of direct financing.