Concluding remarks It is too early to be able to draw very strong conclusions about the impact of inflation targets on actual economic performance in Canada. We really do require a longer period of time for targets to demonstrate their ability to deal successfully with the peak of an economic upturn without the trend of inflation moving persistently outside the target range.
The micro-prudential supervisor’s concern for more capital, faster, is rooted in scepticism over the asset quality of the European banks’ balance sheets, due to practices of  BIS central bankers’ speeches  3  forbearance and failure to recognise embedded losses.