The Reserve Bank intends to re-impose LVR restrictions to guard against continued growth in high-risk lending. New Zealand's central bank released its six-monthly Financial Stability Report this morning and Reserve Bank governor Adrian Orr said the relatively resilient economy meant the financial system had not been tested as severely as it could have been. The Reserve Bank has signalled its intention to consult on re-introducing the bank restriction from March 1. However, the Reserve Bank expected loan impairment rates to rise and banks had increased loan loss provisions in anticipation. The Reserve Bank said despite the decline in economic activity housing market activity and credit growth had rebounded strongly.

Source: New Zealand Herald November 24, 2020 20:26 UTC