The Reserve Bank of New Zealand (RBNZ) announced the regulatory limit for covered bond issuance by local banks on January 21, with the cap – of 10 per cent of a bank's total assets – matching the hopes of domestic borrowers. The level is higher than the equivalent cap in other jurisdictions, and the limit – of 5 per cent – hinted at by the Australian federal treasurer, Wayne Swan, when he last year proposed the adoption of the asset class in Australia.