-7In downside scenarios, there could be some persistent damage to the productive capacity of the economy from the loss of valuable employment relationships, depressed investment, and the destruction of intangible business capital. A wave of insolvencies is possible.
The importance of payment and settlement systems could be gauged from the IMF publication “Central Banking Lessons from the Crisis” (May 27, 2010) which states that: “The crisis would have been much more severe had central banks not taken efforts to introduce robust payment and settlement systems, including for foreign exchange, over the two decades ahead of the crisis.