Bank loans to firms
The C.S.B. had let one commercial loan in November from depositors' funds. It was made to a small factoryowner with a good saving's historv, and had been for $40,000. “If the application had been bigger, we would have recommended a stock switch deal." Mr Frank Dickson, the bank's managing director, said.
More than $1 million has been let on commercial mortgages recently by the Canterbury Savings Bank.
Two loans, one of $600,000 and the other of $450,000. have been confirmed by Mr Dickson. However. Mr Dickson said that the mortgages had not been funded from deposits but from “local authoritystock switch deals." The cost of the loans, including the finance rate and the interest rate, might be as high as 20 per cent, he said.
As a method of mortgage funding, it was too expensive for the average home-buyer.
Stock switch loans had nothing to do with housing finance. "They are totally unrelated. There is no similarity between the two. absolutely none." Mr Dickson said.
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Press, 18 December 1982, Page 10
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169Bank loans to firms Press, 18 December 1982, Page 10
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