Reserve Bank of New Zealand Financial Stability report
- financial system remains resilient to a broad range of economic risks
- financial system risks remain elevated, and ongoing effort is necessary to bolster system soundness and efficiency
- it is imperative to improve New Zealand's financial system resilience while conditions are conducive
- there is also a need for some insurers and non-bank deposit takers to improve their capital buffer
- says the current LVR settings remain appropriate for now
The FSR is where the RBNZ flag changes to LVRs. No changes were expected today and that is the case.
More:
- will be reviewing insurer solvency standards in the months ahead
- says domestic debt levels are high in the household and dairy sectors, leaving borrowers and lenders exposed to unanticipated events
- challenges exist in high global debt levels and stretched asset prices in NZ's trading partners
- says any further easing in LVRs is subject to continuing subdued credit and house price growth
Again with the LVRs. The Bank adds the expect to review LVRs every six months.
LVR is loan to valuation ratio - used to set how much banks' can lend (that's the in a nutshell definition).
