Guaranteeing deposits to build the public's confidence in the nation; shareholders' equity is zero, and at the same time, it does not guarantee other creditors of the banks. It is a semi-rescue measure that is difficult for regional banks to survive under the prospect of continuous interest rate hikes and economic recession.
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$First Republic Bank (FRC.US)$ These regional banks had an operating cash flow of less than 0.3 billion yuan last year, accounting for only about 20% of their total profits. They mainly rely on investment and financing to generate profits, making it difficult to survive in the current situation of rising interest rates.
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$BioNTech (BNTX.US)$ 🚀 400
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