In this regard, some Asian economies, based on the experiences of financial crises in 1990, have already made use of various macro-prudential tools such as loan-to-value ratio to curb excessive real estate loans. As such, some Asian economies have moved ahead of advanced economies in terms of implementing macro-prudential policies. In spite of their relative stability, Asian financial systems also face challenges.
One of the policy challenges is to foster the development of capital markets, especially the corporate bond markets. In emerging Asia, there would be huge financing needs for building social infrastructure such as public transportation, energy supply and communication networks.