RBNZ plumps for ‘speed limit’ on lending restrictions
The Reserve Bank of New Zealand's (RBNZ) macro-prudential tool to restrict the amount of high loan-to-value (LTV) lending that the country's banks can conduct will operate as a "speed limit", the central bank said today.
After consulting with the banks, the RBNZ settled on an instrument that will limit the amount of high LTV loans banks' can offer to a proportion of their new lending, rather than restricting it altogether.
This restriction is one of the four macro-prudential tools at the central
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