The Reserve Bank has announced further steps to help New Zealand banks struggling to raise cash on overseas credit markets.
It says it will lend to cash-strapped banks against an expanded range of collateral including credit card debt, corporate debt and loans secured against commercial property.
The move follows the central bank's decision to extend the collateral it will lend against to include residential mortgages in October.
It has been expanding the collateral it will accept from banks since global credit markets - where New Zealand banks raise up to 40% of their funds - began to seize up at the end of last year.
The Reserve Bank says it will only accept low risk debt from banks in return for loans, and says this follows similar moves by other central banks around the world.