Turning to the involvement of the state in the economy, the euro area general government sector makes up a substantially larger share of output than in the United States and Japan. In 1999, euro area government expenditure amounted to 49% of the euro area's GDP.
There are three central pillars to how we promote sound prudential management by banks, including by overseas-owned banks, in New Zealand. First, we look to the banks themselves for self-regulation. This is about policies and structures that promote effective governance by banks’ boards of directors, including effective oversight by local  BIS Review 45/2004  3  boards of the local banks’ managements.