Worse, the stability of the banking system that provided the debt is questioned.
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As one illustration, many of the supervisory guidances issued by federal bank regulators have been motivated, at least in part, by concerns that a particular industry trend posed risks to the stability of the banking system as a whole, not just to individual institutions.
The big question hanging over the markets is the stability of the European banking system .
Financial difficulties of the Spanish government threaten the stability of the Spanish banking system and vice versa.
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For the Liberal Democrats, Vince Cable said that while there was now "relative stability" in the banking system, "another round of bad debts" could produce a "double-dip recession".
Jeroen Dijsselbloem, the Netherlands' finance minister, said in a statement he had "looked at every alternative involving private parties", but found none that could guarantee the stability of the Dutch banking system.
As Mr Borio at the Bank for International Settlements points out, many of the ideas around countercyclicality (setting aside more capital in good times) and macroprudential regulation (safeguarding the stability of the whole banking system as well as of individual banks) were oven-ready, having been worked on by a coterie of central bankers, academics and regulators for a number of years.
The priority at the moment was to ensure stability in the banking and financial system, he said.
At the Center for Financial Stability, we specifically measure the banking system and broader money supplyexisting in the private sector.
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Additionally, the Fed failed to provide stability to our monetary system, resulting in the collapse of the U.S. banking system.
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We now know there was at least one big problem with this narrow approach: it encouraged the Bank of England to ignore a lot of other important stuff such as rising asset prices and the build-up of huge debts within the banking system, which weren't causing inflation but turned out to pose a massive threat to our economic stability.
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