For example, the Hong Kong Monetary Authority's decision to increase the CCyB level to 2.5 percent in January 2018 was importantly linked to housing developments.
Another explanation for the differences in observed CCyB levels across countries is the range of available macroprudential tools to stem the buildup in financial vulnerabilities in different countries and the degree to which such tools have been the preferred means for addressing identified vulnerabilities.8 For example, housing market booms, as noted above for Hong Kong, have been a concern in several countries in recent years.9 Accordingly, some national authorities have used macroprudential tools focused on housing, such as caps on loan-to-value ratios, to try to increase the resilience of borrowers and to indirectly strengthen the resilience of the banks and the financial system should their housing booms turn to busts.