New Zealand Banks Urge RBNZ to Delay New Lending Restrictions
The Reserve Bank of New Zealand building in Wellington, New Zealand.
Photographer: Birgit Krippner/BloombergThis article is for subscribers only.
New Zealand banks are calling on the Reserve Bank to delay implementation of new mortgage lending restrictions such as debt-to-income ratios as the housing market cools.
Existing restrictions and rising interest rates are already slowing home-lending growth, and banks are concerned the introduction of further limits could have “unintended consequences,” the New Zealand Bankers Association said in a submission to the RBNZ posted on its website. It urged the central bank to assess the impact of market changes before using additional tools.