RBNZ consults on DTI limits with full macro-pru review scheduled for 2018

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The Reserve Bank of New Zealand (RBNZ) has issued a consultation on whether debt-to-income (DTI) limits could add a new dimension to its macro-prudential toolkit.

Published today (June 8), the consultation aims to gauge the industry’s thoughts on DTI limits, which could help to decrease loan defaults in the event of a sharp rise in interest rates or a negative shock to incomes.

“While the full macro-prudential framework will be reviewed in 2018, the Reserve Bank has elected to consult the publ