real house price in the u. s. increased by more than 40 percent between 2002 and 2006, while u. s. loan growth, particularly mortgage loans, accelerated during the same period. these signs were also present in east asia before the 1997 crisis. in the current crisis, the securitization boom and the easing of monetary policy in the us helped fund the loan growth, while in the case of the asian financial crisis, it was the large capital inflows in the form of direct borrowing that funded the credit boom. in both cases, however, poor underwriting standard by banks was an important common contributing factor. looking back, the asian financial crisis has been an important turning point for policymakers in the region, as the lessons learned from the crisis had led to many important policy reform initiatives, all of which aimed at strengthening the robustness and the risk management discipline of the domestic financial systems, and this brings me to my second point. in the case of thailand, after having restored financial stability in the early 2000s, financial reform became a top priority, with emphasis on instilling prudent regulations and strong risk management. we adopted a macro - prudential approach in the early 2000s, in recognition of the systemic linkages between the financial system and the increasingly opened macroeconomic conditions ; utilizing our natural institutional advantage as we continue to oversee both monetary policy and financial institutions supervision. hence, from 2003 to 2006, a series of macro - prudential measures were introduced, aiming at restraining then the rapid growth of credit, especially credit card loans and mortgage loans. the preventive measures that were introduced included placing limits on the loan - to - value ratio for luxury mortgage, raising minimum repayment requirements for credit cards and personal loans, and strengthening npl provisions by fair valuation standards of ias39. looking back, these measures have been useful in curtailing excessive leverage and household indebtedness, thus helping to maintain stability in our domestic financial system. risk - based supervision was a key driving force to strengthen risk management practices of our financial institutions. financial institutions and central bank laws have been overhauled to keep up with the increased complexity of the financial system. the new financial institutions business act, enacted last august, empowers the bank of thailand with the authority to regulate banks and non - banks under a consolidated supervision regime. furthermore, risk management and governance practices of financial institutions have also been strengthened. board of directors are now held accountable by law for setting the strategic and

important milestones on that map, the most important is to cease issuance of term sterling libor - linked cash products by the third quarter of 2020. 3 the increased focus and energy from sterling market participants this year is palpable. but they cannot run this race alone. as track marshals and safety officials, the bank of england and fca also have important roles to play – and we are using all the tools at our disposal in that quest. understandably, perhaps, focus often alights on the ‘ sticks ’ we can wield. and it ’ s true that the regulatory authorities have stressed that firms ’ boards and executives must take ownership of the transition and its key milestones, through ‘ dear ceo ’ 4 and ‘ dear senior manager ’ 5 letters, and through direct supervisory you can see this vividly in the charts at : www. theice. com / iba / historical - data www. bankofengland. co. uk / - / media / boe / files / markets / benchmarks / rfr / rfrwgs - 2020 - priorities - and - milestones. pdf this target refers to products maturing beyond 2021 dear ceo letter : www. bankofengland. co. uk / prudential - regulation / letter / 2018 / firms - preparations - for - transition - from - libor - to - risk - freerates and feedback : www. bankofengland. co. uk / - / media / boe / files / prudential - regulation / publication / 2019 / firms - preparations - for - transitionfrom - libor - to - risk - free - rates. pdf www. bankofengland. co. uk / prudential - regulation / letter / 2020 / next - steps - on - libor - transition all speeches are available online at www. bankofengland. co. uk / news / speeches engagement. the fca has set out how it will exercise its powers of life and death over libor, including the critical judgment on representativeness. 6 and the bank ’ s financial policy committee ( fpc ) has said that it will consider using other policy and supervisory tools to encourage transition if progress is too slow. 7 figure 1 : sterling risk free rate working group roadmap for 2020 but the public sector has ‘ carrots ’ too – and we are doing at least as much to encourage and enable sterling transition as we are to enforce it. the bank of