Wednesday, April 23, 2008

Borrowing becomes harder in New Zealand

The days of being able to walk into a bank and get a loan have been brought to an abrupt end by the global credit crisis, KPMG says in its latest industry report.

From now on, people wanting to borrow money will face a much tougher time as the big banks curtail their lending, especially for purchases of investment property.

"The global credit crunch, slowing asset growth and a slow but steady increase in doubtful debts all point to the fact that the tide has turned," says KPMG deputy chairman of banking Godfrey Boyce.

He says lending policies are being strictly enforced, and that bank staff are being given little, if any, discretion to vary terms and conditions.

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