Greater role for banking

Press, 20 February 1986, Page 26

Greater role for banking

PA Wellington A greater involvement of banks in the home mortgage market is seen by a Wellington economist, Mr Len Bayliss. Mortgage lending could be over 30 years at 90 per cent valuation of the property, he said. Mr Bayliss made his comments in a preview of his address to the Trusteebank annual conference in Queenstown

He said there would develop more emphasis by the banking industry on the personal retail sector of the market, which had been very poorly ser-

viced in the past. Mr Bayliss, who was chief economist with the Bank of New Zealand before becoming an independent economic consultant, said the mass media market would require expensive and skilled electronic equipment.

Intense competition in house financing would develop and this would be the key to cross-selling other financial services, such as life and general insurance, superannuation and retirement investment.

The key to success for the Trusteebanks, for example, lay in improved marketing and the continuation and expansion of good personal financial services. These were seen as residential mortgages, home improvement loans and general lending such as for cars, travel, term, life insurance and general insurance on car and house contents and medical insurance. • Trusteebanks have made a unique contribution and must work to maintain their present regional and social characteristics,