With a debt-to-income ratio tool back on the table, Gareth Vaughan looks at the political and other challenges the RBNZ needs to overcome to be granted the financial stability tool

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In its response to the 2017 consultation, bank lobby group the New Zealand Bankers’ Association  argued the evidence linking high-DTI loans and default was weak, with job loss having the most significant impact on the likelihood of loan default. NZBA suggested a serviceability interest rate as a potential alternative.

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