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The central bank has confirmed it will look at reinstating loan-to-value ratio restrictions on high-risk lending from March next year.
The restrictions were removed in May to encourage home-buyers and lending.
Reserve Bank (RBNZ) deputy governor Geoff Bascand said the lending market had since improved.
“And we are now observing rapid growth in higher-risk investor lending. We will consult about re-instating the restrictions we had in place pre-Covid, which limited the amount of high-risk lending that banks could make.”
It would consult on the changes next month.
Meanwhile, RBNZ also confirmed a further delay of the requirement for retail banks to hold increased capital.
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