- and who this surprises should represent the level of shame felt for economic ignorance.
28/05/2016 8:16 AM
RT @ProWorkflow: Tracking of your Progress for #projectsuccess.Check out the new Task Progress #proworkflow https:…
20/05/2016 7:03 AM
Tax havens have no economic justification, say top economists
11/05/2016 7:16 PM
@SelwynPellett - hopes of the middle to get ahead - all that drive to globalisation without much of a care for where the burden fell...
6/05/2016 3:43 PM
@SelwynPellett - Trump existence is down to the failure of existing policy to support the hopes
6/05/2016 3:40 PM
@SelwynPellett - that many?
6/05/2016 3:37 PM
RT @nfergus: "Nothing makes my blood chill more than the thought of Trump and Putin doing a deal."
6/05/2016 1:00 PM
Australia budget: Multinationals to be hit with 'Google tax' - - come on NZ.
4/05/2016 8:24 AM
RBA cuts rates to 1.75% ahead of federal budget #SmartNews - wake up RBNZ.
3/05/2016 8:06 PM
Google restructures to avoid hefty penalties in Australia, as tax bill hits $16 million #SmartNews
30/04/2016 1:41 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.

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