NZ financial system sound, still faces housing, dairy and bank funding risks

Tue, 30 May 2017

By Rebecca Howard May 31 (BusinessDesk) - New Zealand's financial system is sound but housing market vulnerabilities remain a key risk and the central bank still wants to curb high debt-to-income lending if necessary, it said in its twice-yearly financial stability report. Since the last report, house price inflation has moderated and banks are more resilient to a market downturn, but houses remain overvalued in many parts of the country and some homeowners are vulnerable to a potential fall in incomes or a rise in mortgage rates, it sai...

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