Investor Presentaiton
Residential lending is well managed
12%
10%
8%
% LVR Lending Commitment Volumes by Segment
6%
86
4%
2%
0%
90
May-16
Jun-16
■AINV >70% LVR (After Exclusions)
Jul-16
Aug-16
AOO >80% LVR (After Exclusions)
Sep-16
OTHER >80% LVR (After Exclusions)
LVR Speed Limits implemented (step-up focus on residential investors) - November 2015
Off-shore borrower lending restrictions implemented - June 2016
Home Loan delinquencies at record low indicative of improvement in consumer credit quality on
the back of strong external factors such as low interest rates and buoyant housing market
RBNZ has signalled an appetite to add a form of Debt to Income ratio to its range of macro-
prudential tools but does not yet have the mandate to do so.
LVR Risk
Appetite
Tolerances:
Auckland
investor (AINV)
> 70% - 4.5%
Auckland Owner
Occupier (AOO)
> 80% - 9.0%
All Other
> 80% 14.0%
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