International ratings agency Standard and Poor's has downgraded the credit ratings of major New Zealand banks amid concerns over Auckland's housing market.
The country's biggest banks - ANZ, ASB, BNZ and Westpac - have had their standalone credit profiles dropped one notch.
Standard and Poor's says the rapid rise in Auckland house prices has increased the risk of a sharp correction.
Labour finance spokesperson Grant Robertson says it falls on the Governments neck.
"The Government has sat on its hands for years now as the Auckland housing bubble is grows now it's affecting the stability of our banking sector they need to step up and act."
While the agency says there is an increased risk of a sharp correction, it's unlikely.