RBNZ says New Zealand financial system is resilient

Headlines from the report are via Reuters

• the New Zealand financial system remains well placed to support the economy
• house prices remain above sustainable levels despite recent declines
• rising global interest rates have put downward pressure on the prices of assets such as equities Equities Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Read this Term & housing
• expect to see a slowdown in high-DTI lending over the coming months
• while gradual adjustment in house prices to more sustainable level is desirable for stability of financial system, larger correction remains a possibility
• if interest rates need to increase more than currently anticipated to contain inflationary pressure, this could lead to a softening in labour market over time
• expect the increasing trend in capital ratios will continue during next few years as remaining elements of capital review are implemented
• proceeding to design a framework for operationalising DTI restrictions
• our 2022 stress test programme investigating risk for banks from higher interest rates & falling house prices
• underlying weaknesses in some industries may be revealed as targeted fiscal support is removed
• intend to have framework for operationalising DTI restrictions finalised by late 2022
• slowdown in global growth, increasing trade protectionism, or further sanctions could amplify trade impacts in NZ

NZD/USD is off a few tics. There isn't much of surprise in the report.

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Note 'DTI' is debt to income and refers to a macroprudential tool in NZ.