Happily, here in Mauritius, with judicious regulation, prudent local bankers, and a good bit of luck, we escaped the worst of that phase of irrational trading, and set our compass on a more ethical course.
Yet, rapid credit growth and asset price bubbles have made regulators worldwide question their domestic micro- and macro-prudential policies to cope, amongst others, with the unintended consequences of the lingering low-interest-rate environment. The loan-to-value ratio, that we recently introduced, aims to contain speculative pressure in our property market, which has been pushing prices beyond their real value.