Overseas Chinese Banking Corporation (OCBC Bank)

[Layman A]

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.

From my layman understanding, I don't think there will be "stupendous amount of defaulter" in Singapore, ha ha.

I would be much more worried if the government did not kick in the 7 or 8 round of property cooling measures and let the property prices balloon up indefinitely.

Look at it this way, if there is no funds out there dumping the three bank share furiously , and no short seller trying to take advantage of the situation, do you have any chance to scoop up quality A+ blue chip share at cheap cheap price ?