While a few Southeast Asian countries have used the LVR tool since the 1990s, it was the global financial crisis - referred to as the GFC - that made the world more conscious of financial stability risks, leading to a greater acceptance of mortgage lending restrictions.
It is also likely to discourage banks from investing the resources necessary to better measure operating risk. At a minimum, it provides them no incentive to do so. This issue, especially on methods for determining operational risk, is one about which your comments are eagerly anticipated. Are even the largest banks ready to take advantage of the IRB approach?