RBNZ warns NZ banks to stay vigilant amid commercial property risks

The commercial property sector has had a decline in values since 2021. (Image: NZME)

Tue, 27 Aug 2024

Financial stability risks related to commercial property are “currently” contained but banks should remain vigilant, the Reserve Bank of New Zealand says. In the first quarter of 2024, NZ banks had $44 billion in lending to commercial property, or around 8% of their total loans. “Overall bank exposure to commercial property in New Zealand is low and banks are well equipped to deal with the increased stress levels,” the bank said in a Financial Stability Report special topic. “This limits the direct risk t...

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