When conditions warrant, however, it will be appropriate to ease or modify the incidence of the LVR policy. The Bank is currently consulting on a new asset class for residential investment mortgages that will attract a higher risk weighting than owner-occupier mortgages.
The fact that these issues continue to surface is a clear indication that the subject matter of today’s Forum remains relevant. From my own experience at the Reserve Bank over many years, I have gained an appreciation of the important role that internal audit can play in our financial institutions. The Reserve Bank is, of course, very much a bank.