What are the potential risks worthy of attention in the future of the United States?

First, regarding the financial system, we believe that future risk observation focuses on small and medium-sized banks in the United States and their repo market for financing and lending. Although small U.S. banks are not facing the apparent pressure of deposit loss, the characteristics of their deposit structure, such as the high proportion of large deposits and the low coverage ratio of cash assets to large deposits, make them more vulnerable to market run sentiment, especially some Financial institutions with high asset-liability mismatch pressure.

Second, paying attention to the cross-border transmission of European risks is also necessary regarding the financial sector. Considering the high level of European debt held by U.S. banks, the debt risk in Europe may also become a hidden danger for U.S. financial institutions. This month, the European Central Bank’s balance sheet shrinking plan will be officially launched, and the follow-up still needs to pay attention to the potential disturbance of European debt pressure on the Fed’s policy. In addition, the recent transmission of U.S. bank risks to Europe may also indirectly intensify the fermenting pressure of European financial risks.

Third, the overall assets and liabilities of the real sector are healthy, and structural issues focus on the risks of car loans and credit cards in the residential sector.