RBNZ details wide ranging bank capital adequacy review noting internal models approach used by big 4 banks has potentially undermined the effectiveness of market discipline

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28.5 percent of all outstanding mortgage debt is interest only , the majority of which is linked to Auckland housing and investors, and we query bank discipline, as Auckland household debt/income has reached levels unseen in Australasia. As Auckland prices start to cascade lower, the first to fall over the cliff will be those with no ability to amortize those debts.