Excessive deficits are accompanied by high government shares in GDP - in Germany, the spending-to-GDP ratio in 2003 was 49% (up from 39% in 1970).
But APRA’s announcement earlier this week on unquestionably strong capital ratios means that the larger banks, in particular, will need to build their capital a little further over coming years. As D-SIBS, the major banks are also subject to more intense supervision by APRA.