It has declined from nearly 17% of all lending in 2014 to around 7% at the end of 2021. The system-wide loss given default has therefore declined leading to a more stable, resilient financial system. This has been the main benefit from having macroprudential policy options.
Figure 2: The Stock of High LVR Mortgages in New Zealand  The Need for a Complete Set of Tools While it has been beneficial for us to add macroprudential tools to our policy suite, it has also become apparent that we need a full set of tools to better manage risks.