Graeme Wheeler delivered a trenchant defence of the bank's curbs on high loan-to-value ratio home loans yesterday when challenged by National MP Jami-Lee Ross that the regime had been "almost too effective".

The Reserve Bank is indicating the removal of restrictions on high loan-to-value home loans may be gradual rather than a now-you-see-it, now-you-don't affair.

The Reserve Bank is developing a stress testing framework for the nation's lenders to gauge their health in the event of a downturn.

The Reserve Bank's restrictions on low deposit mortgage lending took more borrowing out of the system than expected.