Risk premia in other market segments rose dramatically, liquidity dried up, and financing conditions worsened considerably. Companies were confronted with acute liquidity shortages as revenues plummeted abruptly.
The composite indicator of systemic stress (CISS) used by the ECB suggests that the European financial sector was most likely facing an imminent and severe financial crisis, which was only averted by a decisive and swift policy response on the part of the ECB (Figure 11).