In a recent speech Charles Littrell, APRA Executive General Manager Policy Research and Statistics Division, suggested that APRA was like Goldilocks as far as regulatory capital for banks and insurers was concerned: not too much, not too little but "just right", but its version of "just right" was probably more than what shareholders thought was right as APRA looked at it from the point of view of depositors and policyholders.

Littrell identified some trends:

1. Better use of surplus capital: instead of risking it on a risky "strategic initiative" it is being returned to shareholders

2. the increasing complexity and divergence of regulatory equity from accounting equity.

3.improving the quality of capital, and particularly quality of equity, rather than increasing the absolute quantity of regulatory capital. He thought the net effect of this was neutral but that the capital ratios of Australian banks would be in the lower ranks compared to international peers even though their asset quality was amongst the best.