The IMF has put 8 smaller NZ banks on notice that they have a one in two chance of being at risk. They followed this up by warning of downgrading these institutions. Should those who have their money and businesses with these banks be worried? Who knows? The IMF has also warned us in recent days that our housing market is overheated and overvalued. That we should already know. If the drought and the effects of that persist then any other ‘shock’ to the NZ economy could well push us over the edge according to the above forecasts. That other banks that have strong ‘overseas parents’ could weather any storm is partly comforting to those who deal with such banks. It would be a sad day if the utterings and actions of the IMF serve to undermine some of these fine institutions. The TSB has been around for a long time and it is slowly reaching into areas beyond its initial base in Taranaki. There is no doubt that many people are loyal to this and other banks but we need to be mindful of these warnings. Whether the Government through economic policy can avert any undue ‘failings’ in our economy is a moot point. I am sure that they will not want to see our smaller banks failing any more than the customer. This stance, should be taken as proven, but the connections amongst the National Party members may well serve us a different result. When it comes down to profits and money in the pocket, who knows what well-heeled members of the National Party will chose; the best interests of New Zealand or their own agendas. That the housing stock is overvalued, is a worry and perhaps the answer to our possible predicament means a realigning of that situation---where more realistic expectations are put in place.