RBNZ to deepen macroprudential

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From Interest.com.nz:

The Reserve Bank says it’s mulling three ways mortgage loans to residential property investors could be defined as it works to establish a new asset class for such lending within trading banks’ capital adequacy requirements.

The move is partly to facilitate the introduction of a macro-prudential property investor policy should that become necessary, the Reserve Bank says.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.