Other institutions, mindful of the possibility of contagion if a run got going, might support one of their competitors provided there was a reasonably held expectation of solvency. But if the confidence shock was more systemic in nature the question was how the whole system could be supported.
I would now like to say a few words to reinforce our views about recent exchange rate developments that are a source of concern. Over time, exchange rates should reflect underlying economic and financial developments and prospects. But in the short run, there can be volatility as markets gauge those prospects.