While improvements in the methodology of risk models and the transparency of better risk modeling in business decisionmaking are very useful, I believe we cannot stop there. Banks that have similar models of risk can have very different inherent levels of risk. That is, each institution has to decide what level of risk it is willing to accept to run its business.
The deficit indicators, however, have deteriorated in the recent period following crisis induced fiscal expansion (Table 6). The average saving rate also showed a substantial increase from 23 per cent of GDP in the 1990s to about 31 per cent in the 2000s with a peak saving rate of over 33 per cent achieved during the high growth phase of 2004–08.