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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Unity First Home Buyer special 3.99
ICBC 4.25
SBS FirstHome Combo 4.29
Co-operative Bank - First Home Special 4.35
TSB Special 4.39
Co-operative Bank - Owner Occ 4.45
ANZ Special 4.49
ASB Bank 4.49
SBS Bank Special 4.49
Unity Special 4.49
Westpac Special 4.49
Westpac Special 4.45
SBS Bank Special 4.49
BNZ - Std 4.49
Kiwibank Special 4.49
TSB Special 4.49
AIA - Go Home Loans 4.49
ANZ Special 4.49
ASB Bank 4.49
Co-operative Bank - Owner Occ 4.49
ICBC 4.59
Wairarapa Building Society 4.59
SBS Bank Special 4.99
Westpac Special 4.99
ICBC 4.99
BNZ - Std 4.99
AIA - Go Home Loans 5.15
ASB Bank 5.15
Co-operative Bank - Owner Occ 5.19
ANZ 5.39
TSB Special 5.39
Kiwibank Special 5.39
Kainga Ora 5.49
SBS FirstHome Combo 3.44
AIA - Back My Build 3.54
SBS Construction lending for FHB 3.74
CFML 321 Loans 4.25
Co-operative Bank - Owner Occ 4.99
Co-operative Bank - Standard 4.99
ICBC 5.39
Heartland Bank - Online 5.45
Kiwibank - Offset 5.65
Kiwibank 5.65
ANZ 5.69

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