CEO Barbara Chapman says ASB now has 'a great degree of comfort' with RBNZ's high LVR restrictions after being taken aback at how low limit was set

CEO Barbara Chapman says ASB now has 'a great degree of comfort' with RBNZ's high LVR restrictions after being taken aback at how low limit was set

By Gareth Vaughan

The Reserve Bank setting its high loan-to-value ratio (LVR) "speed limit" at 10% of new residential mortgage lending was lower than ASB had expected, CEO Barbara Chapman says, but the bank is now tracking at about 5%.

ASB was caught out last year after the introduction of LVR restrictions, meaning in late September it gave customers who had received pre-approvals for high LVR loans just days to draw them down or lose them. This earned the bank a public dressing down from Finance Minister Bill English, and mocking from ANZ CEO David Hisco who labelled the move  "a bit of a brand disaster" for ASB.

Speaking after ASB posted its half-year results yesterday, Chapman told interest.co.nz the speed limit being set as low as 10% had been a surprise.

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