House Prices

Finance company collapses tipped

Dark clouds are gathering over the $10 billion finance company sector and one or two collapses are expected, a report out today warns.

Thursday, June 24th 2004

The 94-page analysis of the sector by independent broking firm McDouall Stuart says one or more failures are to be expected, as the mushrooming sector adjusts to new economic conditions.

"A growing market has seen the formation of countless finance companies. Many are small, over-geared or over-exposed to a sector and a tightening market may see one or more collapse."

The finance company sector is about to come under increased scrutiny by regulators, with the Securities Commission launching a review of disclosure.

McDouall Stuart claims some finance companies pose a significant risk to investors, a risk for which they are being "woefully compensated."

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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