The ANZ problem been known for a while. They told their commercial and ag customers a month or so ago ....and expect tighter lending and probably higher costs
All banks (not just the big four) run ‘dodgy’ models to assess risk and equity ratios. All ‘fine tuned’ to give the ‘answer’ they want.
All banks take too much risk and/or too leveraged if current ROEs are anything to go by. No wonder the RBNZ is doing the right thing and getting it sorted.
Hypothetical question: What would you say if someone offered you an investment with a promised pre-tax return of close to say 20% pa over many years?.
You mighty say: “How much can I buy?” or like most sensible people: “What is the catch?”
Think about it
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