SYDNEY, April 3 (Reuters) - New Zealand's central bank announced on Monday a new framework of macroprudential tools that would give the bank the ability to restrict lending based on debt-to-income radios.
"DTI restrictions on residential mortgage lending, when implemented, set limits on the amount of debt borrowers can take on relative to their income," Director of Prudential Policy Kate Le Quesne said in a statement.
"This supports financial stability by limiting higher-risk mortgage lending, thus reducing the likelihood of a future housing-related financial crisis."
The publication of the framework does not immediately activate the restrictions.
