The approach must be comprehensive as macroprudential measures will not be effective if it is done in isolation. Since we operate in a dual financial system, all macroprudential measures are applicable to both the Islamic and conventional financial systems, as both have exposures in housing market and household debts. Second, the measures were targeted to minimise unintended cross-sectional spillovers Instead of a broad-based LTV ratio limit, we imposed the measure only on borrowers with three or more house financing to ensure a continued access to financing for eligible first time house buyers and those investing long-term in a second house for wealth diversification. In Malaysia, we have an on-line system called Central Credit Reference Information System or (CCRIS)) which allows us to have more granular data to monitor borrowers with multiple outstanding house financing. In other words, we have an on-line system where each citizen and companies having exposures in the banking system will have their data centralised in one particular database. That way we know at any point in time, the detail exposures of any companies and individuals. The other important point to note is that we did not narrow the application of measures to specific geographical locations and house type or price in order to avoid circumvention or abuse as developers and lenders can easily build or finance houses at the edge of a restricted zone or price range, or even create a new house type (e.g. Small Office Home Office (SOHO)).

During the Global Policy Forum in Kuala Lumpur last year, the 121 members of AFI have adopted the Sasana Accord to set quantifiable and measurable financial inclusion indicators as national targets. It is also encouraging to know that 28 OIC members have direct membership in AFI, while 4 others are indirectly affiliated through regional central banks. Further, financial inclusion solutions typically involve cross-disciplinary collaboration. Policymakers could consider a national coordination mechanism, for example, in the case of Tanzania and Mexico to effectively identify policy priorities and allocate the right resources in implementing the policies. Third, data and technology are key enablers of innovative policy solutions Robust data collection and gap analysis help policymakers to connect with realities on the ground and identify real needs for intervention. Data also facilitates monitoring and impact assessment to determine if a particular policy is achieving its intended outcome. Technology plays a critical role as it provides low cost, scalable channels to deliver financial inclusion solutions. It is particularly effective in overcoming geographical barriers to financial inclusion. The Malaysia’s experience in agent banking shows how data and technology enable innovative policy solutions. It also helps to make an informed decision on resource allocation. In 2011, the Bank conducted the Financial Inclusion Demand Side Survey to complement supply side data collected from financial institutions. Data highlighted that there was a lack in the provision of access points, as only 46% of 837 sub-districts with a population of more than 2,000 have at least one financial access point.