RT @PositiveMoneyUK: Sign the petition | Create money for people https://t.co/IuxFGbOehi https://t.co/LARoo3aWEp
28/08/2016 9:55 AM
The Economist | Monetary policy: When 2% is not enough https://t.co/taKPP9V9Ze
27/08/2016 7:51 PM
Years of Fed Missteps Fueled Disillusion With the Economy and Washington - WSJ https://t.co/tgwJcJ4kz7 #SmartNews
26/08/2016 10:12 PM
The Economist | Monetary policy: When 2% is not enough https://t.co/taKPPacLnO
26/08/2016 7:56 PM
26/08/2016 7:06 PM
RT @PositiveMoneyUK: Creating money for people - How could it work? https://t.co/ejsxK4iuwS
24/08/2016 8:37 AM
RT @MacroPru: MT @QuantNews_com Monetary Versus Macroprudential https://t.co/Mk8PXyaAs2 @bankofengland @LSEEcon #creditcontrols https://t.…
24/08/2016 8:26 AM
RT @TheEconomist: Treks and hikes https://t.co/3NT8tTn6EM https://t.co/vP6Fr3fuzv
24/08/2016 8:26 AM
RT @Mick_Peel: Varoufakis: Clearly, money is not like potatoes or any other well-defined “thing” https://t.co/0Pd9oH0hc3 https://t.co/AouBz…
23/08/2016 9:52 PM
RT @BBCNews: Brexit: Farm subsidies 'revolution' urged by rural campaigners https://t.co/wH02lzYUoh
17/08/2016 6:52 PM
NOV 13

Loan to Value Ratios

1 comment(s)

There was a recent article in Bloomberg, which talked about RBNZ’s recent moves to protect financial stability, particularly in comparison to the Federal Reserve.

New Zealand was not the first to expand the use of prudential controls to blunt debt growth. It is inevitable that targeted interventions create reactions from the targeted rather than spreading the pain around by an interest rate hike, and who cares about a few exporters suffering with higher exchange rates.

The word is the LVR restrictions are being effective, perhaps too effective in areas that are no contributing to the asset price bubble. Collateral damage needs to be avoided or we run the risk of the antibodies triggered by the prudential restrictions impacting good policy – the policy bombs need to be smart.

LVR restrictions in the regions and for new builds make no real sense and should be seeing some policy attention.

tags: loan to value ratios, prudential tools, policy, interest rates, exchange rates
Industrial Real Estate Loan - 25 December 2013 at 4:09 AM
That is a very well written blog. Today its hard to get loan from banks due to their security and interest factor.

Website URL:
Remember Me:
Email Replies: