Property & house prices

[Poor Student]

The reason banks aren't lending is because they've been told to increase their capital ratios by regulators, government and "the market". In the absence of private capital funding, the only way of doing this is by not lending.

While that's the major factor falling values should also encourage banks to seek higher deposits in case of early repossession. The more rapidly declining the market, the less likely a deposit will hedge against a loss on a bad loan over time.

[Billsthoughts]

I think you all give banks too much credit. monkey see monkey do in most of them...