Guidelines for these companies have also been issued by the Reserve Bank, so we can expect such new companies to get established in the near future. There is some corroborating evidence suggesting the difficulty of entry for new business entrepreneurs. When we look at the World Bank surveys on doing business across countries, India typically ranks quite low in the range of 120-130.
Most private lending is secured on property, so large loan losses tend to occur when there is both a substantial fall in property values and a high unemployment rate. In most areas, New Zealand property prices did not fall very much or for long.