In Indonesia, the formulation of macroprudential measures is done as follows. We develop some methodologies to assess some sort of optimal lending growth of the banks, including what we call non-accelerating inflation lending growth model. We apply the model to aggregate lending growth as well as lending growth to each bank, certain types of lending (consumption, working capital, and investment) and per economic sectors.
By comparing these optimal vs. actual lending growth, we have some idea where excessive lending occurs and thus some instruments of macroprudential measures are justified and can be applied. This is the approach that we applied when introducing loan-to-value (LTV) ratio to lending to automotive and property sectors in 2012.