Source: MIL-OSI Submissions
Source: Reserve Bank of New Zealand
Over the past weeks, we have seen how COVID-19 has quickly become one of the biggest social and economic challenges of modern times. As we get closer to moving out of the Alert Level 4 lockdown, we wanted to update you on how we – the Reserve Bank of New Zealand – have been supporting New Zealanders in these difficult times.
Since the onset of COVID-19 in New Zealand, we have delivered a broad range of activities to ensure the financial sector is well positioned to meet the needs of New Zealanders. Over recent weeks we have reprioritised the regulatory reform landscape so financial service participants can focus on supporting their customers’ needs, knowing there will be time and space to tackle the challenges ahead. More recently we have proposed removing mortgage loan-to-value ratio (LVR) restrictions, as this is a countercyclical tool and we have been able to consider lowering this now that the risks of excessive lending have subsided and banks can now lean into a recovery. This should also enable banks to support customer needs.
Alongside this we have been working closely with the whole of Government and industry to keep our financial system stable, ensuring foreign exchange, debt and money markets are operating efficiently and at low cost. We’re keeping cash-flow moving around the economy – between banks, firms, households, and the Government.
On behalf of every one of us here at Te Pūtea Matua, our thoughts are with you, your whānau and all of Aotearoa as we navigate through these uncertain times together.
Stay safe and be well. Kia kaha.
Governor, Reserve Bank of New Zealand