RT @FT: 5. The #TPP is controversial in many of its member countries http://t.co/EnoDmR4hVQ http://t.co/aZjrGjEvb9
6/10/2015 4:07 AM
RT @EconEconomics: The Trans-Pacific Partnership deal has succeeded. Despite America’s bitter internal politics http://t.co/4F9wIAI1GO http…
6/10/2015 4:06 AM
TTPA - it seems they found a way - details will be very interesting.
6/10/2015 1:15 AM
RT @ftworldnews: TPP trade deal: seven things to know http://t.co/9TPGmiRxlh
6/10/2015 1:13 AM
The Economist | Global monetary system: Thrills and spills http://t.co/44Rx2BVuiu via @theeconomist
5/10/2015 12:41 AM
The Economist | Car loans: Warning light http://t.co/bmWtkk001R via @theeconomist
5/10/2015 12:40 AM
@RedHotSquirrel @ProfSteveKeen - nuts: FIRE economy burning everything else "what can't be paid will not be paid" end game will be ugly.
5/10/2015 12:38 AM
@1petermartin @ellenthoen - not US government but donors to the political process chasing payback..
5/10/2015 12:34 AM
The Economist | Free exchange: Taking a pounding http://t.co/f9mkQptVVw via @theeconomist
5/10/2015 12:14 AM
RT @george_cooper__: Minsky's 'stability creates instability' still misunderstood http://t.co/CMlFYUbAat less is more - 'instability create…
4/10/2015 9:42 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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