It is a big day in business news for the country, with the reserve banks capital review underway.

The large banks have advised the market this week that they will be allowed measure risk using a standardised model.

JMI Wealth director Andrew Kelleher told Larry Williams why this could hurt the housing market.

"This could float through to the amount of money they are allowed to lend. Tighter lending standards puts pressure on mortgage rates, and combined with the roll out of kiwi build, it is not a great combination and may have a impact on the housing market."

LISTEN ABOVE AS ANDREW KELLEHER SPEAKS TO LARRY WILLIAMS