Bank capital rule changes another weapon aimed at housing market

Bank capital rule changes another weapon aimed at housing market
House prices are falling and tighter bank capital rules are contributing. (Image: NZME)
Jenny Ruth
In a few weeks, we'll get to see the impact of one of the Reserve Bank's more obscure changes to bank capital requirements, which could be delivering yet another kick to an already subsiding housing market.The change affects only the four major banks. Back in the mid-2000s, the RBNZ reluctantly agreed to allow the big four to use their own internal models for calculating how much capital they required, rather than the standardised models the smaller banks have to use.The reluctance was an understandable desire to have all banks obe...

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