The Office of the Superintendent of Financial Institutions (OSFI) published its fall update to the 2025–2026 Annual Risk Outlook, maintaining four previously identified key risks and adding emphasis on risks linked to tariffs and housing market strains. OSFI also assessed that Canadian financial institutions are sufficiently resilient to absorb these risks and remain positioned to manage a downturn. Supervisory and regulatory priorities include continued assessment of adherence to Guideline B-20 on prudent underwriting, portfolio management and account management, alongside examination of compliance with the newly implemented loan-to-income measure and a review of mortgage lenders’ risk management for variable-rate mortgages with fixed payments. Work on liquidity risk guidance will continue by incorporating consultation feedback into further guideline updates and consultations through 2026, complemented by efforts to strengthen institutions’ preparedness for stress events and readiness to take measures that alleviate constraints on institutions so the system can leverage its built-up resilience.
Office of the Superintendent of Financial Institutions 2025-10-09
Office of the Superintendent of Financial Institutions updates Annual Risk Outlook to add tariff and housing market strain risks
The Office of the Superintendent of Financial Institutions (OSFI) updated its 2025–2026 Annual Risk Outlook, highlighting risks related to tariffs and housing market strains while affirming the resilience of Canadian financial institutions. OSFI's priorities include monitoring adherence to Guideline B-20, compliance with the loan-to-income measure, and reviewing risk management for variable-rate mortgages. Ongoing work on liquidity risk guidance will incorporate feedback to enhance institutions' preparedness for stress events.