The Reserve Bank of New Zealand yesterday announced revised criteria under which banks can sell securities to the bank, on a short-term basis and at an interest rate penalty.The major change is to widen the pool of eligible securities that banks can sell to the RBNZ under repurchase agreements, and to lengthen the term of those agreements to 30 days.Mortgage-backed securities will now qualify, providing they meet RBNZ criteria (mainly that they be denominated in New Zealand dollars, are prime loans and have at least AA credit ratings).The new list of eligible securities includes AA-rated or better NZ government sector debt.The discount margin will be 50 basis points for all eligible securities while the RBNZ will also ease limits on the amount of securities banks can sell into the facility.Most changes apply from early June though banks won't be able to sell mortgage-backed securities to the RBNZ until the end of July, and there will be further consultation on details.The RBNZ wrote in its announcement that "the changes are seen as temporary, to be kept in place while global markets remain unsettled" and will be reviewed in 12 months' time.