Macro-prudential policy - implementation

Macro-prudential instruments are operationalised via changes to the Banking Supervision Handbook and banks’ conditions of registration, in accordance with the macro-prudential policy framework for New Zealand.

LVR restrictions were implemented in October 2013, and revised over time.

Read more about LVR restrictions

Debt serviceability restrictions, including debt-to-income (DTI) ratio limits, were added to the Reserve Bank’s Memorandum of Understanding (MoU) on macro-prudential policy with the Minister of Finance in August 2021. We are currently consulting on operationalising DTI restrictions and on a floor on test interest rates.

View and provide feedback on our Debt serviceability restrictions consultation

We will consult on any changes required to enable the operation of other macro-prudential instruments if deemed necessary.