Apart from episodes of malfeasance, which are relevant but circumscribed, serious difficulties mainly concern a handful of medium-sized and small banking groups. This class of banks has been particularly hard-hit by the recession, owing among other things to lesser diversification of risks and revenues.
Core inflation, along with other measures of inflationary pressures, is monitored to help achieve the target for total CPI inflation; it is not a replacement for the latter. A flexible exchange rate is also a core element of Canada’s monetary policy framework.