Wouldn’t it 6 / 10  BIS central bankers' speeches  be more sensible for the national authority to have the power to simply choose the tool that it deems most appropriate for the risk at hand? And finally, we need to make the EU framework more comprehensive.
We should add some tools, particularly borrower-based ones, such as loan-to-value ratios which come in handy in the upturn of the cycle. Research has shown that such tools can help fight bubbles in real estate markets and limit household leverage.13 From a more general point of view, a flexible macroprudential framework is needed; one that allows to quickly respond to market developments.