most expenisve asset is also the cheapest..

In business, the most expensive asset for the enterpreneur is equity. This qualifications stems from the fact that any business takes time to build the business and this time is hardwork and persevearance put in by the enterpreneur.
This time is represented in the form of equity for the enterpreneur in his enterprise.

So he hold on to his equity and values his equity highly.

Small and medium enterprise also have a tough time making investments for future business opportunities. Firstly on account of the fact that when there are many avenues to make such investments, it becomes difficult to choose the optimal investment to maximise returns and also because small firms find it difficult to leverage liquidity. There are definite limitations imposed on small firms to the extent of debt they would be given by a financial institution (bank).

However when we look at the banks itself, especially in developed economies, shareholders equity generally referred to as Tier 1 capital is as low as 4% of liablities. And guess what are these liablities for a bank, the deposits the bank holds of the public.
What this means is if a bank goes bust, it has just 4% of its own funds to return incase of liquidation on the other hand it also means that the banks would never lend to any business leveraged in this manner, but is somehow able to garner funds from the public despite its overleveraged position.

This also means most banks have 4% of their own money while 96% comes from public
deposits, ineffect banks are doing business with public money.

This is in stark contrast to a business firm, wherein if not all at least 50% of capital needs to be from the owners of the business.

Ergo, a business firm if it defauts loses a greater amount-50%, while a bank loses 4%.

Given this information, the banks are the smart buggers, doing business with public money. Taking a greater risk with public money.
While a small business holds its equity dearly that has little value and does business with their own funds.

When a bank defaults, the soverign (reserve bank) prints more currency or bails them out. As we see in the case of Northern Rock.

While the business if it goes bust, the first lien is the bank's.