NZ central bank says risks remain elevated, LVR appropriate for now

Credit: REUTERS/David Gray

WELLINGTON, May 29 (Reuters) - The Reserve Bank of New Zealand (RBNZ) said on Wednesday that the country's financial system is resilient, but risks remain elevated, adding that the current loan-to-value ratio (LVR) is appropriate.

"The current LVR settings remain appropriate for now, with any further easing subject to continuing subdued growth in credit and house prices and banks maintaining prudent lending standards," Governor Adrian Orr said in the bank's half-yearly financial stability review.

The RBNZ had eased mortgage restrictions and signalled plans to ramp up banks' capital requirements in its previous review.

(Reporting by Charlotte Greenfield and Praveen Menon; editing by G Crosse)

((; +64-4-802-8163; Reuters Messaging:; Twitter @pravemn))

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