Capturing loan-to-value data in New Zealand – challenges and opportunities
Like many countries, New Zealand experienced rapid increases in both house prices and household debt in the decade leading up to the Global Financial Crisis. While house prices fell modestly during the recession of 2009/10, they remained elevated relative to fundamental metrics such as rents or incomes. By 2013, house prices were rising rapidly again in some parts of the country, particularly Auckland and Canterbury, reflecting both stronger demand and housing shortages. Although the rise in house prices was accompanied by only moderate growth in total household credit, lending undertaken at high loan-to-value ratios (LVRs in excess of 80 percent) had risen to nearly a third of all new housing loan commitments.
A new approach to macro-prudential policy for New Zealand
This article outlines the Reserve Bank’s new macro-prudential policy framework and the governance arrangements surrounding it. Macro-prudential tools can help address the build-up of systemic risk in the financial system. Such tools can create additional buffers for financial institutions and help to dampen growth in credit and asset prices directly, but they are not a ‘silver bullet’. The macro-prudential approach is still in its infancy and there is scope to refine the framework in the light of local and international experience. A recent Memorandum of Understanding between the Minister of Finance and the Governor of the Reserve Bank sets out expectations for macro-prudential policy accountability and transparency.
On the Role of Professional Sports in the National Economy Under the Market Economy Conditions
Through the research of the present situations of the professional sports at home and abroad and its influence on economy, this paper points out the opportunities, challenges and the exist- ing main problems that the professional sports faces in the transitional peried-from plan economy to market economy, then elucidates that the professional sports can becompletely developed and improved and play an important role in the national economy under the market economy conditions.