Reserve Bank mulls reimposing LVRs, delays bank capital requirement

Wed, 11 Nov 2020

The Reserve Bank of New Zealand is looking to reinstate loan-to-value ratio restrictions on high-risk lending on March 1, 2021 in a bid to douse the hot housing market.The bank will consult with the market in December, said deputy governor Geoff Bascand.“Circumstances in the lending market have since improved and we are now observing rapid growth in higher-risk investor lending. We will consult about re-instating the restrictions we had in place pre-covid, which limited the amount of high-risk lending that banks could make,” Bascand...

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