HiFX Data Update - RBNZ Financial Stability Report
The RBNZ has just released its Financial Stability Report.
The key points in report are:
•Reserve Bank of NZ stability review says financial system risks have eased, but remain high
•Slower mortgage lending growth and house price inflation have reduced risk.
•RBNZ are to ease LVR’s from start of 2019:
oBanks able to provide 20% (from 15%) of new owner-occupier loans to owner-occupier borrowers with less than 20% deposit
oBanks able to provide 5% of new investor loans to investors borrowers with less than 30% (lowered from 35%)
•High debt and asset prices mean the global economy remains vulnerable to shocks
•High debt levels mean NZ households remain vulnerable to financial risk
•Recent slower mortgage lending growth has reduced financial risk somewhat
•Banks need to better manage their conduct risk and lend responsibly
•Longer term, financial firms need to manage risks from climate change
•Preliminary view that higher capital requirements are necessary
•Will reassess whether banking system has enough capital to weather future extreme shocks
•Domestic banking system remains sound
•Mortgage credit growth and house price inflation have eased to more sustainable rates
The NZD is slightly higher in immediate response.
Current indicative levels are:
NZD-USD 0.6780 / 0.6805
NZD-AUD 0.9385 / 0.9410
NZD-EUR 0.6000 / 0.6025
NZD-GBP 0.5320 / 0.5345
NZD-JPY 77.15 / 77.40
Please call for further information or pricing.
Below is the link to the full RBNZ statement and report:
ends