Banks lash out at RBNZ's proposed debt-to-income ratio tool in submissions

Thu, 23 Nov 2017

By Rebecca Howard Nov. 23 (BusinessDesk) - The proposed inclusion of a debt-to-income ratio tool in the Reserve Bank's toolkit was largely met with criticism in a series of submissions, with ANZ Bank New Zealand saying it is fundamentally flawed and Cooperative Bank calling it a blunt, unproven instrument. The central bank initially sought to include serviceability restrictions or a DTI tool as part of a macroprudential toolkit that includes restrictions on high loan-to-value ratio lending aimed at curbing an overheated housing market. T...

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