Report by BERL on harm caused by high cost lending

Lending is an essential part of a functioning economy, but some loans do more harm than good.

The New Zealand market for credit has changed over the past decade. While the banking sector has grown, the non-bank sector has become increasingly populated with third-tier lenders, offering short term loans with very high interest to vulnerable borrowers in New Zealand.

Economists BERL produced a report on the harms of high-cost lending, the first such report in New Zealand.