The strong surge in demand from outside the euro area contributed to world demand exceeding world supply. This had implications for the scarcity of intermediate inputs, such as semiconductor chips.
Moreover, although commercial banks suffered large losses and some came under significant pressure, the crisis hit particularly hard those nonbank institutions most dependent on wholesale funding, such as investment banks and securitization vehicles. Thus, the Fed lent not only to commercial banks, but also extended its liquidity facilities to critical nonbank institutions and key financial markets, such as the commercial paper market.