On the front page of the business section in the Sunday Star Times, the heading of “Bank eyes new tool on mortgages” caught my attention. I underlined the “NEW”!
Under the responsible lending code, the Reserve Bank proposes that banks allow in their calculations that interest rates might actually go up!! Really! You have to legislate for that?! No wonder we had a colossal Global Financial Crisis.
Having worked in and around bank lending and mortgages all my life, I really thought “prudent” lenders the world over already did just that.
Has the quest for the mighty profit for shareholders so dulled basic banking brains that the Reserve Bank has to legislate every bit of common sense to the banking fraternity?
Tell us about your banking experiences. Surely you can tell us they’re not all that silly….