Regulatory Alerts2022-05-17
New Zealand: Financial Sector Assessment Program: Technical Note on Macroprudential Institutional Framework and Policies
The International Monetary Fund assessed New Zealand's macroprudential framework, noting the Reserve Bank of New Zealand's strong mandate while recommending increased transparency in adjusting policy instruments. The report highlights that despite recent Loan-to-Value ratio restrictions, housing sector imbalances and record household debt persist, necessitating the potential introduction of Debt-to-Income limits. Additionally, the IMF advises raising capital requirements to address systemic risks arising from the high concentration of the banking sector among four major institutions.
Share