In remarks opening its 2025 Risk Management Webcast, the Office of the Superintendent of Financial Institutions (OSFI) set out how it is applying its updated Supervisory Framework and expanded mandate, and signalled forthcoming refinements based on a post-implementation review. The update positioned financial resilience and risk governance as priorities as economic headwinds, trade tensions and interconnected risks intensify. OSFI highlighted potential tariff-driven spillovers to supply chains and credit markets, with possible second-order impacts on real estate lending and corporate credit and a risk of higher delinquencies and impairments in the second half of the year. While funding markets were described as functioning smoothly, OSFI noted that geopolitical volatility can affect funding costs and availability across domestic and foreign currencies, and said supervisors are engaging institutions on downturn preparedness, including provisioning, contingency funding plans, stress testing, portfolio management and operational readiness. The speech also linked OSFI’s expanded mandate to a sharper supervisory focus on integrity and security as prudential risks, alongside corporate governance, compliance risk management and technology-related risks, with boards and senior management expected to embed risk management in business decisions. OSFI is analysing feedback gathered from industry stakeholders and regulatory partners on implementation of the new Supervisory Framework and plans to share themes with industry in the fall. In parallel, OSFI is modernizing its guide to intervention for federally regulated deposit-taking institutions to align with its expanded mandate, risk appetite statement and the updated Supervisory Framework, with publication planned for the first quarter of fiscal year 2026-27, and said work is underway to update the rest of its intervention guides.
Office of the Superintendent of Financial Institutions 2025-06-06
Office of the Superintendent of Financial Institutions plans updated intervention guide for federally regulated deposit-taking institutions and will refine its supervisory framework
The Office of the Superintendent of Financial Institutions (OSFI) discussed its updated Supervisory Framework and expanded mandate during the 2025 Risk Management Webcast, focusing on financial resilience and risk governance. OSFI noted potential tariff impacts on supply chains and credit markets, risks of higher delinquencies, and emphasized downturn preparedness. It is modernizing its intervention guide for federally regulated deposit-taking institutions and plans to share feedback themes with the industry in the fall.