And if the creditor bank happens to be in Russia, Iran, the DRPK, or any number of other hostile financial systems, the debtor bank will likely find things practically impossible to unwind regardless.

Sometimes they get lucky though and the government passes a law allowing them to seize equivalent assets a few decades down the road.

That proves the value of a well-regulated financial system.

Making transfers to those countries is almost impossible from Western banks. It would require sophisticated multi-bank international transfers to do that, which take a long time and are fairly easy to stop.

They are already excluded from the financial system.