Moreover, fiscal policy can and should also focus on increasing effectiveness and efficiency of the public sector itself through “high quality” expenditure and tax policies. Large and inefficient public sectors can put the brakes on economic activity by imposing a high tax burden on the economy and channelling resources into unproductive uses.
In evaluating the impact of their commercial real estate concentrations, bankers should also pay attention to geographic factors. A bank may lend successfully within a certain geographic area but may encounter problems when it begins to lend outside its market, or "footprint," for which it typically has better market intelligence.