For  4  BIS Review 106/2006  instance, there was the beginning of a panic run on a bank in 2003 led by a baseless rumour at one particular place of the country.
Arm's length dealing with financial markets  The second key arrangement for a well-functioning financial system – again using a fairly broad definition of the word 'governance' – is that the public sector deals at arm's length with financial markets. In other words, markets set financial prices and allocate financial resources. There are two dimensions here.