For the larger banks, that will be developing new internal risk models, our expectation is that average risk weights on investor mortgages will increase by a similar amount. BIS central bankers’ speeches  7  Conclusion The resurgence in Auckland house prices over the past year has made the Reserve Bank increasingly concerned about the risks to financial stability.
It is certainly on our “what keeps us awake at night” list. Auckland prices have risen a further 24 percent over the past year, stretching the price-toincome ratio for the region to 9. This is double the ratio for the rest of New Zealand and places Auckland among the world’s most expensive cities.