our banks have borrowed trillions of dollars. at low interest rates, from europe and elsewhere, to finance housing mortgages and other lending, here and in nz.
with the next gfc, the banking system will freezes again that will largely stop. imo, it will not happen any time soon; maybe at the end of the decade.
when it does happen, our banks and property sector will be hit hard.
a thawed model, where only around 10% of lending comes from bank deposits.
