The Reserve Bank of New Zealand has proposed new definitions that would include credit card debt and personal loans for all banks within its new 'speed limit' on high loan to valuation ratio mortgages.The central bank issued a consultation paper on Friday reviewing capital adequacy requirements for housing loans. Reserve Bank deputy governor Grant Spencer said the bank needed to be more precise about how loan and valuation terms were defined and calculated as it applied its 10 per cent speed limit on the growth of high LVR mortgages and tougher capital requirements for high LVR loans.He said the aim was to make the definitions of lending more consistent and apply to banks using both the standardised and Internal Model methods for the risk weighting of capital. Under current Reserve Bank rules, 'standardised' banks that do not use their own internalised risk models include the wider definition of a mortgage that includes all loans to the mortgage customer, including credit card debt and personal loans.  Meanwhile, the Reserve Bank said the 'internal model' banks, which include the big four Australian owned banks (CBA's ASB, NAB's BNZ, Westpac and ANZ), viewed only the mortgage itself as subject to the high LVR rules.The Reserve Bank said it wanted to ensure credit card debt and personal loans were included in the definition for all banks to make sure its macro-prudential policy was effective. "Excluding them from the LVR calculation leads to lower average LVRs and could impact the effectiveness of an LVR restriction, particularly if borrowers became tempted to use their credit card facilities or personal loans to raise or increase the deposit needed to obtain a mortgage," the bank said."This would be an extremely expensive approach to take, since these other loans are typically more expensive to service than a mortgage loan, but it could diminish the effectiveness of an LVR restriction," it said.Submissions on the proposals are due by October 25 and the bank said it expected new rules to take effect in the first quarter of 2014.