Bank of England on solvency and liquidity
Nice communication piece by the Bank of England by talking about solvency and liquidity: The article explains that a bank’s capital base and its holdings of liquid assets are both important in helping...
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That’s it, I’m done: RBNZ takes the path of discretion
A paper from the latest RBNZ bulletin. It has always been clear that the aim should be to increase the resilience of the system to adverse shocks, but is it possible to be more ambitious? The...
View ArticleLVR speed limits are here
RBNZ restrictions on high loan to value ratio (LVR) mortgages came into effect on 1 October 2013. They are already biting – with ASB pulling its high LVR approvals. By definition, the new rules will...
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Bleg: Grimes on bubbles
Arthur Grimes recently gave an interview to Reuters, all I’ve seen so far is this write up via Raf on Twitter (cheers). Now Grimes is an incredibly good New Zealand economist, to put things in...
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Thinking on the US Fed mandate
Via Mark Thoma, I spotted this piece in the Washington Post about the US Fed’s mandate. I disagree with this piece. But, it is well laid out and argued – which makes it a good piece! So let us go...
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Ministry advice on LVRs
It appears an OIA request has made government ministry advice relating to loan-to-value ratio limits on mortgages available. The Herald article is here: Reserve Bank. Treasury. MBIE. Linking is not...
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LVR restrictions bite
LVR restrictions have been in force for just over a month. They are beginning to bite. Mortgage approvals rose between the announcement and implementation dates, but have fallen sharply since then....
View ArticleAre the LVR restrictions riskier than meets the eye?
This time, David Grimmond discusses the loan-to-value speed limits that the RBNZ introduced from October 1 (Infometrics link). David covers a range of concerns about LVR’s in his piece, however he is...
View ArticleSome broad lessons from the GFC
I had to do a brief chat about the Global Financial Crisis, “mistakes” that were made, and the role of the international financial architecture, for a organisation I’m not naming with people I’m not...
View ArticleIs the ‘Chicago Plan’ the way forward?
David Grimmond writes about the old Chicago Plan, written up following the Great Depression (Infometrics link). Given the way it is described by the IMF he believe it: There are many other examples of...
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