In the wake of the Global Financial Crisis (GFC), the need for the macroprudential policy has been widely recognized. The crisis demonstrated that systemic risks, such as sharply rising indebtedness and risk taking,  can accumulate under the surface of economic tranquility and threaten to severely amplify the effect of adverse  financial shocks. Vulnerabilities in the housing sector have repeatedly posed significant concerns for financial  systems around the world. The use of macroprudential policy tools can help mitigate downside risks and prevent credit crunches. A variety of macroprudential policy tools are available in the household sector, such as  sectoral capital requirements and caps on loan-to-value ratios (LTV), debt-to-income ratios (DTI), and debt￾service-to-income ratios (DSTI). There is no “one-size-fits-all” approach, and each policy has pros and cons. 

Therefore, the proper selection of macroprudential tools is essential for policymakers to contain systemic risks.