XN000022-1992-01-28 — Page 2

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TUESDAY, JANUARY 28, 1992

CONTINUING PRUDENCE IN RESIDENTIAL MORTGAGE

LENDING NEEDED: BANKING COMMISSIONER

*

CARSE. THE NEED

TODAY (TUESDAY) FOR CONTINUING

THE COMMISSIONER OF BANKING, MR DAVID

INSTITUTIONS ADVISED AUTHORISED

OF PRUDENCE IN RESIDENTIAL MORTGAGE LENDING.

TO RELAX

SUGGESTIONS THAT THE

BACKGROUND OF THIS WAS AGAINST THE

RECENT AUTHORISED INSTITUTIONS MIGHT BE PLANNING LOAN-TO-VALUATION RATIOS USED IN ASSESSING LOAN APPLICATIONS.

SOME

LEAD

THIS

FOLLOWING THE ANNOUNCEMENT BY THE GOVERNMENT OF ANTI-INFLATION MEASURES IN NOVEMBER LAST YEAR, A NUMBER OF MAJOR BANKS TOOK THE

ΤΟ RATIOS LOAN-TO-VALUATION

70 IN REDUCING THEIR

PER CENT. ARRANGEMENT SPREAD QUICKLY TO OTHER AUTHORISED INSTITUTIONS.

IT

THESE EFFORTS BY AUTHORISED INSTITUTIONS HAVE PRODUCED MORTGAGE LENDING POSITIVE RESULTS. THE RATE OF GROWTH OF RESIDENTIAL APPEARS TO HAVE SLOWED DOWN IN THE FINAL QUARTER OF 1991. HOWEVER, IS NOT YET CLEAR THAT THE OVERHEATING IN THE MARKET, WHICH TO THE BANKS' MORE CAUTIOUS STANCE, HAS BEEN ELIMINATED.

GAVE RISE

INSTITUTIONS TO IT WILL BE A MATTER FOR INDIVIDUAL AUTHORISED

HOWEVER, DECIDE WHEN IT IS PRUDENT TO RELAX THE CURRENT RESTRICTIONS.

THE

VIEW THAT' IT IS

COMMISSIONER'S

SUCH A

WOULD BE RELAXATION HE ADVISES PREMATURE AT PRESENT.

THEREFORE THAT AUTHORISED UNTIL IT IS INSTITUTIONS SHOULD MAINTAIN THEIR MORE CAUTIOUS STANCE CLEAR THAT THE RESIDENTIAL PROPERTY MARKET HAS STABILISED.

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FIVE MORE MEN FOUND POSITIVE FOR HIV TEST

FIVE MORE MEN WERE FOUND TO BE POSITIVE FOR THE HIV ANTIBODY TEST LAST DECEMBER, BRINGING TO 266 THE TOTAL NUMBER OF HIV INFECTED, A SPOKESMAN FOR THE DEPARTMENT OF HEALTH ANNOUNCED TODAY (TUESDAY).

OF THE 266 CASES, 59 WERE CONFIRMED CASES OF AIDS (ACQUIRED IMMUNE DEFICIENCY SYNDROME) AT THE END OF DECEMBER, SAME AS THE PRECEDING MONTH.

SO FAR, 39 AIDS PATIENTS HAVE DIED AND 20 OTHERS ARE EITHER UNDER COUNSELLING AND TREATMENT OR HAVE LEFT THE TERRITORY.

OF THE 266 HIV INFECTED, 60 WERE HAEMOPHILIACS, 175 ACQUIRED THE INFECTION SEXUALLY, FIVE WERE DRUG ABUSERS, AND THREE ACQUIRED INFECTION THROUGH BLOOD TRANSFUSION, THE SPOKESMAN SAID.

FOR THE REMAINING 23, THE INFORMATION AVAILABLE WAS INADEQUATE FOR CLASSIFICATION, HE ADDED.

/UNDER THE