The Reserve Bank says reinstating Loan to Value Ratios will prevent high risk lending.

It plans to have the restrictions back in place by March but is consulting banks first.

Governor Adrian Orr told Mike Hosking mortgage deferrals have been successful and economic activity has improved.

"The Reserve Bank doesn't want vulnerable high risk loans going out, we have spelled that out to banks very clearly."

However, Orr says there's a need to intervene because banks are still providing that money.

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