Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Suggestions That ANZ Action Is In Best Interests Of Customers Is Laughable

Suggestions by former ANZ Economist Cameron Bagrie that his former employer’s move to implement 40% Loan to Value restrictions shows it is thinking of the best interests of customers would be laughable if it wasn't so tragic.

The last thing the ANZ bank is doing is thinking of its customers.

If it was doing that its shareholders would be up in arms demanding answers.

As a business its job is to create money out of thin air and lend it to borrowers in a way that’s designed to return the greatest amount of profit to those shareholders.

The announcement by the ANZ is cynically making the most of the opportunity for a public relations exercise that appears to show it in a responsible light.

If the bank had wanted to do the best thing for its customers it would already have been severely restricting the ability of big investors to borrow more money and ensured that in doing so it put the brakes on rampaging house prices to give first home buyers a chance.

But that would not have suited its function which is to meet its shareholders’ increasing dividend requirements.

With interest rates so low, ever increasing house prices have generated a money creation splurge by the commercial banks as lending on higher house prices helps them replace their tighter margins with an increased volume of interest income and loan fees.

The ANZ is simply concerned that some of its borrowers are becoming over extended and is clipping their wings a little to ensure that when there is a downturn in the housing market it does not get caught with a mass of bad debts that would cause it significant problems.

It could have done that without the fanfare – and probably already was – by simply declining to lend certain investors any more money.

The reality is that the bulk of property investors will be able to meet the new 40 percent LVR level the ANZ has announced and there are so many loopholes there will be little effect on runaway house prices while commercial banks see property as the highest profit avenue for their newly created money.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Covid-19:Probable Case In A Returnee

The Ministry of Health is investigating a positive test result in a person who recently travelled from overseas and completed their stay in managed isolation in a facility in Auckland...

After meeting the final health assessment for release, she left managed isolation on 13 January and travelled home to the Northland region. She lives with one other person who has not been symptomatic, who has been tested and is also isolating while awaiting results...More>>


Oranga Tamariki: Chief Executive Grainne Moss Steps Down

Controversial Oranga Tamariki chief executive Grainne Moss has decided to step down. More>>


USA: Prime Minister Congratulates President Joe Biden On His Inauguration

Prime Minister Jacinda Ardern has congratulated President Joe Biden on his inauguration as the 46th President of the United States of America. “I look forward to building a close relationship with President Biden and working with him on issues that matter ... More>>


New Zealand Government: Cook Islanders To Resume Travel To New Zealand

The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such ... More>>


A New Year: No politicians at Rātana in 2021

Annual celebrations at Rātana pā will be different this year, amid a decision to hold an internal hui for church adherents only… More>>


Government: New Public Housing Plan Announced

RT HON JACINDA ARDERN HON DR MEGAN WOODS The Government has released its Public Housing Plan 2021-2024 which outlines the intention of where 8,000 additional public and transitional housing places announced in Budget 2020, will go. “The Government ... More>>

Government: Pre-Departure Testing Extended To All Passengers To New Zealand

To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. More>>


Covid: Border Exception for 1000 International Students

The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began....More>>





InfoPages News Channels