3 Aug 2021 – APRA released the results and key learnings from its stress testing of on life and general insurers during Covid19 in 2020. https://www.apra.gov.au/news-and-publications/stress-testing-insurers-during-covid-19-results-and-key-learnings
3 Aug 2021 - Finance Minister Grant Robertson and Reserve Bank Governor Adrian Orr announced that they have updated the Memorandum of Understanding (MoU) on macro-prudential policy to further protect the financial system and support the Government’s housing objectives. https://www.beehive.govt.nz/release/finance-minister-and-rbnz-governor-agree-update-mou-macro-prudential-policy
3 Aug 2021 – RBNZ announced that it will soon begin consulting on ways to tighten mortgage lending standards, including:
- restricting the amount of lending banks can do above an LVR of 80 percent to 10 percent of all new loans, down from 20 percent at present, to come into effect on 1 Oct 2021.
- implementing Debt-to-Income (DTI) restrictions and/or interest rate floors in an effort to provide further comfort that borrowing is sustainable, to be introduced at a later date.