Reserve Bank to consult on bringing back LVR restrictions

As the housing market continues to heat up, the central bank is to consult on re-instating loan-to-value ratio restrictions on high-risk lending from March next year. The restrictions were removed in May to encourage home-buyers and lending. However, the Reserve bank says circumstances in the lending market have improved and it is now observing rapid growth in higher-risk investor lending. Meanwhile, it's further delaying the requirement for retail banks to hold increased capital, as they continue to respond to the impacts of the pandemic. New capital requirements for banks won't come in until 2022. Philippa speaks with RNZ business editor Gyles Beckford.