2025-12-21 15:22:21

Many people think that an increase in the Intrerest Rate is Favourable Information for the entire financial system, but it's not that simple.

The seemingly straightforward policy has actually created a huge divide among financial institutions. Large banks benefit because they have enough deposit bases to absorb new funds, and they have more leeway to pass on costs. However, the situation is different for small and medium-sized financial institutions – their asset maturity structure is stretched too long, and the interest margin is squeezed, which will keep them under pressure.

The Japanese banking system is currently undergoing this process. The interest rate hike policy is invisibly widening the capacity gap between institutions. The Matthew effect, where the strong get stronger and the weak get weaker, is particularly evident in the financial sector. Therefore, do not just look at the surface of the policy; instead, examine who is truly benefiting from the policy and who is passively losing.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

8 Likes

Reward
8
5
Repost
Share

Comment

0/400

GasGrillMaster

· 4h ago

Small and medium-sized banks are really going to die, the interest spread has been squeezed to a paper-like state. Large banks are playing people for suckers, a financial version of winner-takes-all. Interest rate hikes seem to bring Favourable Information, but in reality, it's just boiling the frogs slowly to kill the weak. Japan has already demonstrated this, we need to see through this trick. Policies sound nice, but in the end, it's still those institutions without a voice that suffer. Interest rate rise = large banks' revelry, small and medium-sized banks' bankruptcy warning? The Matthew effect sounds good, but it's actually just robber logic. On the surface, it's an interest rate hike, but secretly it's a reshuffle, and the victims don't even know what's going on.

View OriginalReply0

BearMarketMonk

· 4h ago

Another trick that seems to be Favourable Information but is actually Be Played for Suckers; big firms make money while small firms get the leftovers. To put it simply, that's how it is.

View OriginalReply0

PretendingSerious

· 4h ago

Small and medium-sized banks have really been played people for suckers this time, while large banks are lying down and winning. Interest rate hikes look good, but they are actually amplifiers of the wealth gap. The example of Japan is bloody; weak institutions simply cannot withstand it. So, favourable information is relative; it depends on who has food in their pockets.

View OriginalReply0

StableCoinKaren

· 4h ago

It seems that the big banks are going to make easy money again, while the small and medium-sized banks are really struggling this time.

View OriginalReply0

CodeAuditQueen

· 4h ago

This is similar to the logic of the reentrancy vulnerability in smart contracts... On the surface, the policy appears to be symmetrical, but in reality, power is concentrated at the top, and small institutions become the honeypots that are being drained. The term Matthew Effect is too polite; it essentially represents the accumulation of systemic risk.

View OriginalReply0

Trending TopicsView More
#2025GateYearEndSummary
35.54K Popularity
#JoinGrowthPointsDrawToWinGoldenBar
36.59K Popularity
#ETHTrendWatch
154.79K Popularity
#FedRateCutPrediction
83.03K Popularity
#ShowMyAlphaPoints
178.31K Popularity

Hot Gate FunView More

1
BOOKBOOK COIN
MC:$3.57KHolders:2
0.04%
2
tttTEK
MC:$3.52KHolders:1
0.00%
3
LUCKLUCKY
MC:$3.57KHolders:2
0.04%
4
100000BtcBd
MC:$3.53KHolders:1
0.00%
5
WTHwealth9231
MC:$3.55KHolders:2
0.03%

Sitemap