In moderated remarks, Deputy Superintendent for Supervision Angie Radiskovic outlined the Office of the Superintendent of Financial Institutions’ modernization of prudential oversight and said she is reviewing its risk appetite statement as part of a supervisory reset. The approach concentrates supervision on material risks, reduces unnecessary burden and considers growth and competition in calibrating requirements without weakening resilience or financial stability standards. Radiskovic reviewed measures supporting that approach, including the indefinite pause of key Basel III Endgame elements, the June reduction of the Domestic Stability Buffer to 3.0% and a streamlined approvals framework for eligible new entrants. Final capital changes lower the risk weight for unrated corporate small and medium-sized enterprise exposures to 75% from 85%, reduce the base weight for low-rise residential construction to 130% from 150%, and introduce more risk-sensitive treatment for qualifying acquisition, development and construction projects. The broader modernization program has also rescinded 20 guidelines, removed 32 documents from OSFI’s guidance library and introduced scheduled Quarterly Release and Industry Days. Renewed supervisory processes use enhanced data and analytics to target the most consequential risks, alongside closer coordination with provincial regulators and the Financial Transactions and Reports Analysis Centre of Canada on integrity, security and anti-money laundering issues.

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