The government has now decided to extend the Lease Buyback scheme to owners of 5 room flats. Previously, it was restricted only to 3 and 4 room flats.
This extension make sense, as the some owners of 5 room flats also need this facility.
Anyway, it is up to the government to set the price and terms for the lease buyback. They have a monopoly of this business. The commercial banks are restricted from dealing with it.
Since the banks are allowed to give loans on new flats, there is no reason to restrict the banks from the lease buyback scheme. They should now be allowed to enter into this market and give some competition to the government, which seemed to operate this monopoly to make a profit.
This extension make sense, as the some owners of 5 room flats also need this facility.
Anyway, it is up to the government to set the price and terms for the lease buyback. They have a monopoly of this business. The commercial banks are restricted from dealing with it.
Since the banks are allowed to give loans on new flats, there is no reason to restrict the banks from the lease buyback scheme. They should now be allowed to enter into this market and give some competition to the government, which seemed to operate this monopoly to make a profit.
The government represent the public.The bank represent the private shareholder.
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