Reserve Bank of New Zealand proposes easing some macroprudential requirements

Reserve Bank of New Zealand

• Proposing to ease LVR restrictions with effect from 1 June 2023
• Assessed that risks to financial stability from high LVR lending have reduced to a level where current restrictions may be unnecessarily reducing efficiency

• Proposing to ease LVR restrictions from 5% limit for loans with LVR above 60% for investors, to 5% limit for loans with LVR above 65% for investors

At the margin Margin Margin is a certain amount of collateral a trader places with a broker when he wants to trade with borrowed funds. This is done with a margin account, and it lets you to trade with leverage, increasing your buying power and multiplying your potential profit. Of course, trading on leverage increases both the potential profit and potential loss. Generally, the margin requirements are low, say 3% minimum depending on the instrument, and to open a position you’re required to set aside a certain amou Margin is a certain amount of collateral a trader places with a broker when he wants to trade with borrowed funds. This is done with a margin account, and it lets you to trade with leverage, increasing your buying power and multiplying your potential profit. Of course, trading on leverage increases both the potential profit and potential loss. Generally, the margin requirements are low, say 3% minimum depending on the instrument, and to open a position you’re required to set aside a certain amou Read this Term an easing of policy

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LVR stands for Loan-to-Value Ratio. It is a ratio that measures the amount of a loan in relation to the value of the asset that is being used as collateral to secure the loan.