Recessionary phases since the bursting of the bubble have tended to involve a vicious circle in which the fragility of the financial system has amplified the extent of the recession, but this risk has diminished in line with the improvement in the condition of the financial system.
This happens when local banks start to tap foreign funding to meet a local demand for funds, or to get into international lending themselves. By taking foreign funding onto a balance sheet already strongly funded by the transactions balances and other core liquid assets of the economy, a domestically significant bank implicitly increases the risk for the domestic fund providers.