At last....some banks change rates

It's all about maintaining 'margins'.

The phenomenon becomes more noticed as the world adds countries (economies) to the list who head towards deflation.
Mortgage rates do not continue in parallel with the OCR ad infinitum!

Sure, when the OCR is 'up there', the mortgage rates can virtually follow them down....however, when the OCR arrives at (current) lower levels, we do not enjoy the parallel falls of yester-year.
The reason is because banks have to retain their margins.
The banks borrow from overseas as we are aware, and as the OCR falls they move to borrow off domestic depositors.

This 'phenomenon' is going to surprise many, particularly property investors, who are going to even experience 'rises' in mortgage rates.
There are many who now fit into this more 'aware' group, and that is resulting in us seeing a growing number exiting (or at least not 'entering')the Auckland residential property market?

We do not see public condemnation of the huge margins made by the banks (to help satisfy their shareholders) as we experienced with the condemnation of the finance companies, who, after all, were the backbone of support for property developers.

Someone once said that the banks are a form of 'boys club', where they are unique in an ability to create money (eg: overdrafts) out of virtual thin air.
In contrast, the poor 'condemned' finance companies simply did not have that perk, and their inbound'depositors' funds dried up, virtually overnight.
The banks, when faced with the same dilemma, simply 'created' more money for themselves....and survived?

Try opening a bank to test whether that suggested 'boys club' exists.
I understand that you are not even allowed to use the word bank at all....even in the name of your shop?

Maybe someone will work out that it may be a good idea to resurrect those old finance companies, and when times occasionally get tough, give them a controlled ability to create their own form of overdrafts??