ACT welcomes easing of bank capital rules: We called it all along

"ACT welcomes the Reserve Bank's decision to ease back the extreme capital requirements imposed on New Zealand banks and make life easier for borrowers. But let's be clear, it never should have taken this long," says ACT Leader David Seymour.

"ACT said it all along. We opposed these rules when they were first mooted by Adrian Orr back in 2018. We were the only party to challenge them then, and we've stuck to our position consistently since.

"Over the past seven years, those rules have sucked value out of the economy. Kiwis have paid higher interest rates than they needed to. Small businesses, farmers, homeowners, all were punished to satisfy a theory that the Reserve Bank never adequately justified.

"Banks responded to the regime by raising interest rates. This was the perverse, but easily-predicted, result of regulatory overreach. That's why I directed the Ministry for Regulation to investigate this regime 18 months ago. Shortly after, the Reserve Bank kicked this review into gear.

"Today's Reserve Bank reversal is a victory for the people who've tried to get ahead in life but been denied finance due to overcooked regulation. But more than that, it's another case of ACT taking a principled stand early, sticking with it, and being vindicated.