Overseas Chinese Banking Corporation (OCBC Bank)

[InvestArk]

You have to understand the model of banking. The banks are paid to hold the assets thus making themselves less liquid. In a way, bank provides a service to make everyone else more liquid and itself less liquid and makes profit from it.

A bank trying to sell everything illiquid on the book hardly makes any profit. Plus, no other industry has the holding power of banks as banks are able to leverage up to 10 - 20 times. What other industries can have such high leverage and be solvent?

If I am not mistaken, the subprime foreclosure back in the 06 was due to the stupendous amount of defaulters who were unable/prefer not to repay their mortages and thus leaving the banks operating there with plenty of properties /(collaterized debt obligations) which yields near to nothing and finally causing a crash.