Education Policy | Post Primary | Preschool | Primary | Tertiary | Search


Seminar: Slippery slope of home lending

Slippery slope of home lending

Banking expert Dr David Tripe will explore the potentially dangerous downstream impact of home lending, at a seminar in Wellington tomorrow (Wednesday).

He will look at the steady increase in banks' lending on housing and how this relates to the balance of payments deficit and private sector foreign indebtedness.

Dr Tripe observes that the value of housing stock has risen substantially, accompanied by a very considerable growth in home lending, and explores where the money has come from to fund that lending. “Not from household savings – because there hasn’t been much of that. Instead banks have had to fund their lending from other sources, particularly from non-residents whose contribution to our economy has risen dramatically.”

He examines the relationship between that offshore contribution and the balance of payments deficit, noting that a major contributor to that deficit is the investment account. “And major components of that account are the servicing of debt to non-residents plus the profits of foreign-owned firms.”

Dr Tripe predicts what could happen if foreign investors become uncomfortable with their holdings of New Zealand dollars and exit, and if high household spending (rather than saving) continues.

“We could have a slowdown in our ability to absorb foreign funding of the banks (and so a slowdown in housing lending), and in foreign acquisitions of New Zealand businesses.”

Dr Tripe is Director of Massey University’s Centre for Banking Studies.

The forum will be held on Wednesday 16 August from 12.15 - 1.30 pm at the Museum Room, Turnbull House, Bowen St, Wellington.


© Scoop Media

Culture Headlines | Health Headlines | Education Headlines

Howard Davis Article: A Musical Axis - Brahms, Wagner, Sibelius

Brahms' warm and exquisitely subtle Symphony No. 3 in F major, Wagner's irrepressibly sentimental symphonic poem Siegfried Idyll, and Sibelius' chilling and immensely challenging Violin Concerto in D minor exemplify distinct stages of development in a tangled and convoluted series of skirmishes that came to define subsequent disputes about the nature of post-Romantic orchestral writing well into the following century. More>>


Scoop Review Of Books: A Pale Ghost Writer

Reviewed by Ruth Brassington, Richard Flanagan's new novel is about a novelist hastily ghost-writing the biography of a crook about to go to trial. The reader is kept on a cliff-edge, as the narrator tries to get blood out of his stone man. More>>

Negotiations Begin: Equal Conditions For Men & Women In Professional Football

The trade union representing New Zealand's professional footballers has initiated bargaining for an agreement securing equal terms and conditions for men and women. If negotiated, it will be the first agreement of its kind in the world. More>>


New Zealand Wars Commemoration: Witi Ihimaera's Sleeps Standing Moetū

The second of several articles to mark Rā Maumahara, remembering the New Zealand Land Wars. The first was a Q&A with Vincent O’Malley, author of The Great War for New Zealand: Waikato 1800–2000. More>>


Howard Davis Review: Conflict & Resistance - Ria Hall's Rules of Engagement

From the aftermath of war through colonisation to her own personal convictions, Hall's new CD addresses current issues and social problems on multiple levels, confirming her position as a polemical and preeminent voice on the indigenous NZ music scene. More>>



  • Wellington
  • Christchurch
  • Auckland