Regulatory Alerts2022-05-17
Summary of submissions - LVR BS19 consultation
The Reserve Bank of New Zealand issued this document to summarize responses to its consultation on a framework for restricting high-Loan-to-Value residential mortgage lending. The regulator modified the proposed 'speed limit' approach to include a one-off transition period for handling existing pre-approvals and a permanent six-month rolling compliance period for smaller banks with monthly lending below $100 million. Additionally, the final framework applies restrictions only to the New Zealand balance sheet of registered banks rather than their global operations, while introducing new anti-avoidance provisions to prevent circumvention of the limits.
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