RBNZ tweaks macro-prudential plans after banks push back
'Speed limits' on Auckland mortgage issuance will now be more lenient
The Reserve Bank of New Zealand (RBNZ) has agreed to tweak its plans to impose tougher prudential standards on mortgage lenders, after banks complained its original proposals were overly strict.
In its response today (August 21) to submissions received during a recent consultation, the RBNZ admitted its original plan to impose a 2% "speed limit" on high loan-to-value (LTV) mortgages for property investors might have been overly restrictive.
The speed limit is an innovation by the RBNZ
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