When you look at lending standards, they can only apply to certain types of lending that are decided by regulations. You can think of these types of lending as categories, and the regulations will say what those categories are. The regulations might decide these categories based on why someone is borrowing money, what kind of loan it is, or other circumstances surrounding the loan.
The regulations get to decide how these categories are defined, and lending standards have to follow those categories. You can expect the regulations to consider different factors when creating these categories. This helps make sure that lending standards are fair and apply to the right types of loans.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS593124.
A lending standard may relate only to the class or classes of lending that are prescribed by the regulations.
The regulations may prescribe classes of lending by reference to the purpose of the lending, the nature of the lending, or any other circumstances in which the lending occurs.
