The Reserve Bank (RBNZ) says the number of people and businesses defaulting on their loans is rising but remains at relatively low levels. Loan arrears and non-performing loans are around the levels experienced during the Covid crisis and are well below what was seen following the GFC in 2007/08. RBNZ data shows $1.76 billion of banks' $352.4 billion worth of housing loans outstanding at the end of March was non-performing. That's 0.5% compared to 1.7% of agricultural loans and just over 1% of commercial property loans considered to be non-performing. Banks expect the proportion of non-performing loans to peak at about 0.7% at the end of this year before easing.

Source: New Zealand Herald May 01, 2024 08:39 UTC