However, raising an argument without any logical basis can only be seen as noise, rather than a signal.
At the same time, banks with weak profitability prospects and low market valuations could find it very costly, or even prohibitively expensive, to raise capital from market sources should the need arise. In addition, banks with limited current earnings power may also be tempted to take on more risk. Higher risk-taking by banks can cause financial imbalances to build up, should risks be correlated.