Far from setting a minimum lending rate - they should have been setting a maximum loan to value rate all along.
Think about it; any LTV above 90% was ALWAYS going to spin markets out of control. It was never legislated for because it was assumed too daft; until it was actually common place.
Since the credit crunch began, interest rates on personal overdrafts have actually increased.
7 comments:
It shouldn't be allowed.
Seriously.
why does the bank set a rate. they have no control, so why bother?
That's because the MPC don't control LIBOR.
the MPC should also publish Tractor Production stats for the potempkin area.
CU, did you vote option 4 in the poll in the side bar?
Far from setting a minimum lending rate - they should have been setting a maximum loan to value rate all along.
Think about it; any LTV above 90% was ALWAYS going to spin markets out of control. It was never legislated for because it was assumed too daft; until it was actually common place.
Anonymous, far better for banks to have a supervised reserve ratio.
The average reserve ratio should rise with rising M4 and fall with a falling M4.
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