Interest.co.nz submission to Parliamentary Inquiry Sept2

Submission to Multi-Party Inquiry into Banking by interest.co.nz
Parliamentary Banking Inquiry- Wellington - Sept 2, 2009

Why the problem is not bank profiteering. The problem is New Zealand’s structural settings favouring housing investment.

Who are we to say this?

NZers care an awful lot about interest rates

Obviously banks are profiteering…right?

That’s a big gap. They must be creaming it.

Wholesale funding costs are up 100 bps

Local funding costs are up 150 basis points

Bank net interest margins actually fell

And they’ve been falling for a long while

The bias to farm and housing lending worsened in 2009

And the connection is a foreign debt blowout

Who in this room has an LAQC or family trust?

Ever wonder what a loss of sovereignty might look like?

Reserve Bank Governor

Bank regulator

Currency

So what do we do?
Flatter, simpler tax system
More productive investment
Less property speculation
Land tax or Capital Gains Tax
GST on mortgages/rents?
Use capital adequacy rules
Bigger capital ‘top-ups’

And give this man a knighthood

Thank you for your time

Interest.co.nz submission to Parliamentary Inquiry Sept2

by Bernard Hickey on Sep 01, 2009

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Interest.co.nz submission to Parliamentary Inquiry Sept2 — Presentation Transcript