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Market
How do banks in New Zealand respond to new lending rules in terms of product offerings by the end of 2024?
4
Resolution / Starting Odds
Increase in new loan products • 33%
Restructuring of existing loan products • 33%
No significant change in products • 33%
New product launches and announcements by major banks in New Zealand
Story
RBNZ Eases LVR, Tightens DTI Lending Rules Effective July 1
May 28, 2024, 01:47 AM
The Reserve Bank of New Zealand (RBNZ) has announced significant changes to its lending rules, effective from July 1. The central bank confirms loosening of loan-to-value ratio (LVR) restrictions while simultaneously implementing new debt-to-income (DTI) restrictions. These new DTI rules will limit the amount of high-DTI lending that banks can undertake, allowing only 20% of their lending to exceed specified limits. Additionally, banks will be restricted to lending no more than six times a borrower's annual pre-tax income for house purchases. These measures aim to balance the housing market by tightening some home loan rules while providing some relief through eased LVR restrictions.
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Credit card companies adjust their offerings • 25%
Banks introduce competing products • 25%
No significant response • 25%
Increased partnerships with BNPL firms • 25%
Launch alternative products • 25%
Increase focus on other financial services • 25%
Lobby against the regulations • 25%
No significant change • 25%
Increase in interest rates • 25%
Decrease in interest rates • 25%
No change in interest rates • 25%
Introduction of new monetary policy • 25%
New regulations introduced • 33%
Existing regulations tightened • 33%
No regulatory changes • 34%
Increase Fed Funds Rate • 33%
Decrease Fed Funds Rate • 33%
No Change in Fed Funds Rate • 33%
Stricter regulations imposed • 33%
Looser regulations imposed • 33%
No significant change • 33%
Implement similar controls • 33%
No change in controls • 33%
Revise existing controls without major overhaul • 34%
Yes • 50%
No • 50%
Yes, against one more bank • 33%
Yes, against two or more banks • 33%
No additional actions • 33%
Increase Interest Rates • 33%
Decrease Interest Rates • 33%
Maintain Current Rates • 34%
Increase rates • 33%
Decrease rates • 33%
Maintain current rates • 34%