The sight of senior Hongkong Bank executives contradicting each other over mortgage lending restrictions shows just how contentious the issue remains. Back pedalling followed comments by group chairman Sir William Purves that further restrictions should be avoided.
Perhaps three years bunkered in London has dulled his senses to the fact the bank no longer runs policy quite like the old days. The aftermath saw local general manager Chris Langley kowtow to the Government promising support for any new lending restrictions.
Such grovelling sophistry would have been hard to imagine even a few years ago. It, of course, goes without saying that bankers think they are better able to judge their mortgage risk than Hong Kong Monetary Authority bureaucrats. They just don't say it publicly any more.
While conceding the authority would have no option but to take action if banks failed to heed overheating signals, Mr Langley's call for the industry to exercise self restraint shows the local industry's true colours.
It has been a tough year for mortgage lenders. In April, 70 per cent of approvals were between the best lending rate (BLR) and the same rate plus 0.25 per cent. Only two years ago a margin of more than 1 per cent over BLR was the normal rate.
Having operated a civilised cartel for years the arrival of serious foreign bank competition has changed things. Full of chagrin, local banks claim the worst cases of marginal mortgage lending is the work of foreign banks late on the scene. They are quick to point out that foreign banks are first to turn tail and bail out in times of crisis.