RBNZ extends some emergency measures
New Zealand central bank delays capital changes again and may reinstate LTV limits
The Reserve Bank of New Zealand is further delaying the introduction of new capital rules for banks in an effort to promote economic recovery.
The RBNZ also announced a provisional end date to banks’ dividend restrictions and launched a consultation on reimposing loan-to-value ratio limits on mortgage lending.
It imposed dividend restrictions on banks’ Tier 1 capital instruments in April, and lifted LRV restrictions in May. All three measures were taken to buffer the economic impact of the
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