To enable intermediaries to benefit in full from these loans and to limit the possible procyclical consequences on the availability of collateral of any downgrades of public and private sector securities by rating agencies, the eligibility criteria and the control measures for the risks applied to assets that can be used as collateral were also relaxed.
As the Economist newspaper noted last week: “Following the pandemic is like watching the climate crisis with your finger jammed on the fast-forward button.” Our current response to COVID-19 in New Zealand shows that when the risk is acute, we can act together in a powerful, effective response. This is motivating: with climate change the risk is also acute.