Governor of the Reserve Bank of New Zealand's ( RBNZ ), Graeme Wheeler , has warned imbalances in the nation's property market posed a significant risk to financial stability. The central bank noted the heavy exposure banks have to housing with mortgages making up about 55% of their total assets and record levels of household debt at about 55% of household disposable income. RBNZ prices in Auckland have risen by 15% over last week and RBNZ price-to-income ratios in Auckland are among the highest in the world.
Governor of the Reserve Bank of New Zealand's (RBNZ), Graeme Wheeler, has warned imbalances in the nation's property market posed a significant risk to financial stability. The central bank noted the heavy exposure banks have to housing with mortgages making up about 55% of their total assets and record levels of household debt at 163% of household disposable income. House prices in New Zealand have risen by 15% over the past year and house price-to-income ratios in Auckland are among the highest in the world.