However, financial institutions in the disaster areas have to meet high demand for funds, ranging from the immediate demand from firms for cash for operating funds and cash on-hand, and from individuals for living expenses, as well as future  8  BIS central bankers’ speeches  demand for funds for restoration and rebuilding.
Considering the damage caused to the affected areas, however, new deposits are unlikely to increase for the time being and an effect is likely to materialize from loans going into arrears.