Regulatory Alerts2022-05-17
Consultation Paper: Macro-prudential policy instruments and framework for New Zealand
The Reserve Bank of New Zealand invites submissions on a proposed macro-prudential framework designed to enhance financial system stability and mitigate systemic risks. The document outlines specific instruments including the countercyclical capital buffer, adjustments to core funding ratios, sectoral capital requirements, and restrictions on high loan-to-value housing lending. It further details the objectives of these measures and establishes a decision-making framework for their discretionary implementation to dampen credit cycles and asset price imbalances.
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