It is also the case in the modern world that financial instability is unlikely to remain contained within national borders. All financial disruptions are likely to have an international dimension because the three pillars of any financial system - financial institutions, financial markets, and payment and settlement systems - are increasingly international.
The significantly stronger cash flow generated by profits and depreciation allowances was more than adequate to cover rising capital expenditures in the aggregate. As a result, businesses had little need to borrow during 2003. For the nonfinancial business sector as a whole, debt is estimated to have grown just 3-1/2 percent. Firms encountered very receptive conditions in longer-term credit markets in 2003.