QUOTE(firee818 @ Jun 18 2013, 01:29 PM)
If BNM (gov't) has no say in regard to -xx%, then the banks may manipulate as they like. You may see the banks will give out creditability loans to good rating persons at BLR-2.6% for instant since it is still higher than fixed deposit interest rate.
If it is, the gov't will be very difficult to control housing price...you like it?
bank need some profit margin on their own. or else, they can offer us BLR - 6.6%. BLR -2.6%? some very rich people with close connection to bank mgmt even get BLR-4% (rm million property and able to buy by cash but take loan for sake of having a loan).
if BNM has the power on -xx%, they can just implement it straight away on new loan, BLR-0% or higher. so new buyer with good credit rating only able to buy (reducing NPL risk) while the existing borrowers enjoy current rate (BLR-2.4% etc, n not going to complaint on new xx% implemented and commitment remain the same - NPL risk as usual).
"If it is, the gov't will be very difficult to control housing price...you like it?"
do they have the power to control the price anyway? they only have the power to govern the procedures...