Granny Herald Editorial Way Off Beam

**speights boy** · 24-11-2012, 12:52 PM

I think you exaggerate a bit on what effect it may have.
Giving the TD investor an extra 0.7% (70 basis point) increase in their net return, in order to offset a little of the effect of inflation on that cash is not going to cause a sudden influx.
Just bring closer the real effective tax rates of different investments, and so give the saver a little more in their pocket to spend at their local businesses.

The banks are flush with funds now, not only from TDs but other funding sources as well.
There is no current shortage of credit.

I agree; more business lending as opposed to residential is something that we should strive for.
It will be encouraged through different measures; it is not the purpose of this particular one.

**Wayne** · 26-11-2012, 08:42 AM

Originally Posted by speights boy

I agree; more business lending as opposed to residential is something that we should strive for.
It will be encouraged through different measures; it is not the purpose of this particular one.

I believe that banks are encouraged to lend on Residential property due to the RB capital adequacy ratios - favours property.