RT @martinwolf_: Martin Wolf: Simple-minded economics distorts the debate over education https://t.co/LFd9Fvo5Gi
24/02/2017 8:41 AM
RT @newscientist: What immigration really means for jobs, economies and cultures #1DayWithoutUs https://t.co/AWwNrA5SFS https://t.co/hATSd…
21/02/2017 11:10 AM
RT @newscientist: For every 1% increase in a country’s population caused by immigration, its GDP grew between 1.25-1.5% #1DayWithoutUs http…
21/02/2017 11:04 AM
RT @TheEconomist: For Donald Trump to “lie”, he has to have known the truth. It is possible, however, that he believes his own guff https:/…
19/02/2017 3:57 PM
RT @martin_anota: Le graphique qui explique la tentation protectionniste (@gcalignon) https://t.co/unKJwxcSGL https://t.co/18sSM8azHc
19/02/2017 11:22 AM
RT @RealProgressUS: "“Printing money.” You hear it all the time in economics discussions — from economists in every phylum of the... https:…
18/02/2017 2:44 PM
@bernardchickey: falling prices hurt who? No pain for those: not selling: buying up: buying in: pain for rentals & them selling down - kama?
18/02/2017 2:26 PM
RT @ComminsP: Great moderation? Bollocks. The past 25 years were a period of massive excess. My weekend column. https://t.co/ZqB7LNYbJN @Fi…
17/02/2017 8:10 PM
RT @FinancialReview: Central banks 'have been asleep at the wheel', says @Schroders Investment's Martin Conlon https://t.co/eKYezsexx6
17/02/2017 6:34 PM
Trump is deluded - the truth is what I say it is and what I say does not have to be consistent - down this path is madness.
17/02/2017 9:40 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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