At their most extreme, such events can trigger panicky attempts to withdraw credit, creating runs that lead to failures of important financial institutions and, ultimately, systemic collapse. If policymakers are to detect emerging threats to the financial system, we must understand the determinants of systemic risk and develop appropriate metrics for measuring it.
I cannot even mention their location, the towns, the villages where these banks are, because often they would be the only bank in town so they could be identified. This tells us one thing – that the money is now closer to households and the small and medium-sized enterprises than it was before.