Another problem that has been commonly cited is weak or ineffective regulation of financial and banking institutions. Regulatory reforms were viewed to be partial and incomplete giving rise to loopholes which were exploited by firms. It has also been suggested that the absence of a strong culture of enforcement and accountability led to prudential limits being breached on a regular basis without penalties being imposed. This coupled with the fact that financial institutions were now operating in more demanding and liberalised environment proved a potent mix. The BIS noted in its recent annual report that in spite of Asian banks operating in riskier or less well diversified environments, only three jurisdictions had ratios which were significantly higher than the minimum set by the Basle Capital Accord. The factors above are also likely to have contributed to the development of a credit boom in and the rapid leveraging of several East Asian economies (as described in the section above).