However, beyond the necessities of the moment, letting banks fail might have positive effects. If the threat of failure is credible, then it may encourage banks to behave prudently. The financial system is likely to become smaller and better capitalised.
The figures are the ratios of foreign currency-denominated short-term claims to all claims of foreign banks. 2. The latest data are as of end-June 2017. Source: BIS. 95  97  99  01  03  05  07  09  11  13  15  17  CY  Notes: 1.