The Reserve Bank's Latest Credit Conditions Survey

The Reserve Bank of New Zealand has released its latest Credit Conditions Survey, providing insights into the country's lending market.

The survey, conducted six-monthly, gathers views from 15 NZ-registered banks on credit availability and demand.

Mortgage lending demand has improved for the first time since 2021, driven by falling interest rates and increased listings.

Borrowers are taking advantage of lower interest rates to refinance existing mortgages or switch to new lenders.

Consumer credit demand remains subdued, with demand declining over the survey period.

Consumer sentiment has remained subdued, requiring a broader economic recovery for meaningful consumer lending.

Commercial property demand has increased gradually from a low base, with banks expecting a larger increase in the next six months.

Lower borrowing costs will enhance investment viability, improve returns on leveraged property investments, and attract investors.

Rural lending demand has dropped significantly due to strong commodity prices and increased profitability.

Business credit demand was mixed, with declining demand for capital expenditure loans and increasing demand for working capital and liquidity.