To The Moon

The market has remained gingerly after a number of bank fallouts, first with the collapse of Silvergate Bank, then the bankruptcy of Silicon Valley Bank and forced acquisition of Credit Suisse by its larger rival UBS.

Lack of diversification in customer base and lapses in risk and compliance managements have led to their downfalls, for example Silvergate was a crypto bank and Silicon Valley Bank served mostly technology startups, while Credit Suisse suffered severe losses in 2021 from the Archegos and Greensill financial scandals.

Although some calm has returned to the market following rescue efforts by the regulators, investors remain wary of the resulting liquidity crunch as the banks are now more risk-averse and inclined to shore up their cash balances while avoiding more risky loans lest they turn bad.

Declining credit and lending activities are bound to further slow down the economy already battered by relentless rate hikes by the Fed in fighting the sticky inflation.

Despite these headwinds in the banking sector, I remain optimistic on the long-term viability and prospects of my local banking trio $DBS GROUP HOLDINGS LTD(D05.SI)$ , $OVERSEA-CHINESE BANKING CORP(O39.SI)$ and $UNITED OVERSEAS BANK LIMITED(U11.SI)$ which are well-capitalised with strong fundamentals and robust balance sheets. I trust that they will be capable of withstanding the crisis and emerging stronger over time.

Hence, I perceive their coming ex-dividends as opportunities to scoop up more of their shares for long-term holds and passive incomes.

@CaptainTiger @TigerWire @TigerStars @MillionaireTiger @Daily_Discussion @TigerEvents