Asian economies have also enhanced their resilience to various financial shocks through the flexible introduction and implementation of a number of macroprudential measures, including changes in the loan-to-value (LTV) ratio and the debt-to-income (DTI) ratio. These measures have contributed favorably to the stability of domestic financial systems, as well as the stability of prices of goods and services and financial assets.
Moreover, they have introduced a number of regulatory measures, such as those relating to the foreign exchange positions held by financial institutions, the so-called financial levy, and the minimum holding period of bonds for nonresident investors. These measures have steadily taken effect since they were announced and introduced. Vulnerabilities On the other hand, there are also vulnerabilities in the region.