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

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.