3 ms·
> Sure some of these assets are not liquid. Most of the banks assets are not liquid, such as the loans they have lent out. Banks quite often have problems that
by jerguismi 7y ago
> Sure some of these assets are not liquid.
Most of the banks assets are not liquid, such as the loans they have lent out. Banks quite often have problems that they give credit out too easily, which leads to the situation where their assets aren't worth much. They often also give loans to the stakeholders of the bank which makes it a bit sketchy.
- perl4ever 7y agoWell, banks can become insolvent, like any business can fail. That doesn't mean it's their normal operating mode.