Truist Financial (NYSE: TFC) has lost a third of its value in 2023. Almost all of that decline came during the bank runs that pushed a number of regional banks into insolvency early in the year. So far Truist has held up fairly well, all things considered. And yet 1.51% is a number that is still materially affecting the bank's business.

In its simplest form, a bank takes in short-term deposits and then loans out those deposits long term to other people for things like mortgages. It pays interest to depositors for their cash. It charges interest on the loans it makes. Banks like Truist earn the difference between the interest paid and the interest earned. Modern banking is far more complex than this, of course, but this structure is still an important aspect of the industry.

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Source Fool.com