RT @TheEconomist: Taxes on fizzy drinks seem to work as intended https://t.co/n3o56F93I9 https://t.co/xvJOCrvpb1
28/11/2015 11:15 AM
#Economist - still no solution to their download problem persisted for over 5 months now - get it fixed.
28/11/2015 9:17 AM
I liked a @YouTube video from @profstevekeen https://t.co/gesoSXBQ2E Keen 2015 Betty Sinclair Talk: complexity economics as the
22/11/2015 6:36 PM
@michaelbrunt - the download problem is still not fixed, your dev team needs attention - must do better.
20/11/2015 8:12 PM
I liked a @YouTube video https://t.co/IOxR69q2kh Scarcity: a talk for people too busy to attend talks
20/11/2015 4:51 PM
I liked a @YouTube video from @profstevekeen https://t.co/1bZwlYkl2m Lecture 07: Why the Euro is destroying Europe
20/11/2015 7:18 AM
RT @INETeconomics: Solid essay on “monetizing the debt” issue: https://t.co/LXFvDoPwVX @adairturneruk @JohnCassidy
17/11/2015 8:00 AM
RT @TheEconomist: In 1928, property lending was 30% of all bank loans. By 2007, it had almost doubled https://t.co/tKTwEg9tCK https://t.co/…
16/11/2015 1:32 PM
RT @Economyforums: To the idiots blaming #refugees for the attacks in #Paris, don't you realise these are the people the refugees are tryin…
14/11/2015 1:01 PM
RT @PositiveMoneyUK: Adair Turner makes the case for #QE4People at IMF research conference https://t.co/Et5xhEKcgf https://t.co/pGkg67tEnX
14/11/2015 11:56 AM
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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