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The NZ Herald is reporting Reserve Bank* governor Allan Bollard as saying
“We have been putting quite a bit of pressure on the banks to ensure they are not treating New Zealand borrowers in an unnecessarily different way – bearing in mind there are some arguments about extra risk here – or running down their balance sheets.”
I know that socialists have trouble with this concept, but these banks are private businesses, and the state should keep it’s big nose out of their affairs.
The article goes on to say
The banks were saying the market had got a lot more difficult, that it was harder to raise funds and riskier, and that that risk had to be passed on to corporate borrowers.
“We think that is true up to a point but it is very important they don’t go beyond that point and are there supporting investment into our recovery,” Bollard said.
The arrogance of this is breath taking: Bollard is saying that banks should be supporting economic recovery. That is something that comes out of the back end of a bull: these banks are private businesses and they have no duty whatsoever when in comes to supporting economic recovery.
Why does the state have this attitude towards banks? Because, as I said in my earlier post, the central banking system that causes world-wide suffering is a Communist policy, and the state considers everyone’s financial affairs to be something that it can manipulate at will. Socialist/Marxist governments only pay lip service to the concept of “private property” so will interfere with private affairs whenever it suits them.
What do you think about the Reserve Bank putting pressure on banks?
For more on central banking see my earlier post Global economic crisis: why are governments bailing out banks?
*the Reserve Bank is the New Zealand central bank, equivalent to the Federal Reserve in the USA