Business leaders say productivity is being affected by tighter credit conditions.
The Reserve Bank's biannual Financial Stability Report warns that a lack of credit could hold back economic recovery by reducing capital investment by firms.
Northern Employers and Manufacturers Association chief executive Alasdair Thompson says companies are avoiding bank debt and deferring spending on investments that could improve output and profits.
Dairy farmer and former Federated Farmers president Charlie Pedersen says banks have told farmers to reduce debt and there is no cash to spend on expanding production in meat, milk and wool.
He says any easing in bank lending conditions could be months away.
Westpac Bank and the Bank of New Zealand deny credit criteria for businesses have changed and say they are keen to lend money.
