With the benefit of hindsight it is very tempting to identify the rapidly growing FX lending as one of the major causes of problem in the region. This is indeed the case for a large part of the financial stability risks. Let me mention, though, two additional considerations.
As a central banker, I am aware of the impact FX lending can have on monetary transmission. When significant stocks of FX loans have already built up the depreciation of the domestic currency can exert pressure on the balance sheet of unhedged borrowers.