For instance, the Bank of Thailand has implemented policy measures such as LTV limits for mortgage loans. Further improvements in financial infrastructure are also crucial; for example, in accounting practices, corporate governance, and the judicial system. At the same time, authorities should make efforts to further develop domestic financial markets so that financial intermediaries can make effective use of domestic savings.
The appropriate mix of these policy measures may differ from country to country, depending on each country’s policy objectives and financial system. Still, it is important for any economy to pursue sound macroeconomic policies as well as efforts to enhance the robustness of its domestic financial system.