Don’t rush to change new responsible lending regulations, says social good lender Good Shepherd NZ
February 12, 2022
There should be no changes for at least six months to new responsible lending regulations designed to protect vulnerable people from unscrupulous lenders, says Fleur Howard, chief executive of social good lender Good Shepherd.
Commerce and Consumer Affairs Minister David Clark has ordered an inquiry into the regulations, which came in on December 1, and which bank chief executives say are too prescriptive, resulting in them being able to approve fewer home loans.
But Howard said the regulations were needed to reset lending as society was awash with damaging, unaffordable debt.
“It’s too soon to be reviewing,” she said. “There can be a review in six months, if we are still seeing issues.”