Nevertheless, as in other jurisdictions, we are on guard for any possible build-up of asset price bubbles and its implications for the system and the economy, especially in the context of monetary policy normalization. At this juncture, we are pleased to note that the NPL ratio of universal and commercial banks remains low at only 2.1% as of June 2014.
The way forward for strengthening the NBFI regulatory framework from a macroprudential perspective To date, the macroprudential policy framework has focused primarily on the banking sector. The framework for the non-bank financial sector, meanwhile, is to a large extent lacking a macroprudential perspective.