RBNZ willing to set limits on risky lending if it poses ‘significant risk’ to financial system

Tue, 07 May 2013

By Paul McBeth May 8 (BusinessDesk) – The Reserve Bank would impose the most controversial of its new tools – a limit on riskier mortgage lending with smaller deposits – if it judged those loans to be a “significant risk” to the country’s financial stability. The central bank has completed its public consultation on the use of macro-prudential tools, which aim to curb asset bubbles, and will hold talks with the major lenders over the next two months to establish the implementation of the new tool-kit, deputy governor Grant Spencer said in a...

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