New Zealand to introduce new rules for setting lending restrictions

[SYDNEY] New Zealand on Thursday said it would introduce new lending rules that could give more powers to the finance minister to decide the types of loans the central bank can restrict for financial institutions.

"The Reserve Bank will then have full discretion to decide which instrument is best suited to use and how the restrictions are applied," Finance Minister Grant Robertson said in a statement.

The government will also introduce a new deposit guarantee scheme that will protect up to NZ$100,000 (S$95,700) for every depositor in banks.

REUTERS