The bank has published updated versions of its banking supervision handbook documents
The Reserve Bank of New Zealand has published an updated version of its Framework for Restrictions on High-LVR Residential Mortgage Lending document.
RBNZ said the document was updated to reflect the changes to the bank’s loan-to-value restrictions. These changes apply from Jan. 1, 2018.
The document sets out the RBNZ’s framework for imposing quantitative restrictions on the share of high LVR loans by registered banks to the residential property sector. Loans to the residential property sector include loans secured by owner-occupied residential property and loans secured by residential investment property.
The framework aims to help maintain financial stability, by providing the RBNZ with the practical means of imposing restrictions on the share of high-LVR residential mortgage lending undertaken by registered banks.
The bank also updated its Liquidity Policy document to revise the definition of total loans and advances in the calculation of the core funding ratio. The change allows the core funding ratio to be calculated on a more timely basis, to support its publication in the forthcoming Bank Financial Strength Dashboard. This change applies from Jan. 1, 2018.
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Nearly a third of Aussies stressed about mortgages
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RBNZ said the document was updated to reflect the changes to the bank’s loan-to-value restrictions. These changes apply from Jan. 1, 2018.
The document sets out the RBNZ’s framework for imposing quantitative restrictions on the share of high LVR loans by registered banks to the residential property sector. Loans to the residential property sector include loans secured by owner-occupied residential property and loans secured by residential investment property.
The framework aims to help maintain financial stability, by providing the RBNZ with the practical means of imposing restrictions on the share of high-LVR residential mortgage lending undertaken by registered banks.
The bank also updated its Liquidity Policy document to revise the definition of total loans and advances in the calculation of the core funding ratio. The change allows the core funding ratio to be calculated on a more timely basis, to support its publication in the forthcoming Bank Financial Strength Dashboard. This change applies from Jan. 1, 2018.
Related stories:
Nearly a third of Aussies stressed about mortgages
Lower interest rates stoke greater competition for mortgages
