Canada's Office of the Superintendent of Financial Institutions finalizes 2026 liquidity guidance and consults on credit risk management and governance accountability

Canada's Office of the Superintendent of Financial Institutions (OSFI) published its first Quarterly Release of 2026, finalizing refinements to its Liquidity Adequacy Requirements Guideline and launching new consultations on consolidating credit risk management expectations and strengthening governance and accountability for boards and senior leaders. The package also confirms that OSFI will keep loan-to-income (LTI) limits for residential mortgage lending following a pilot. The credit risk initiative would merge existing guidance for mortgage lending, commercial real estate and corporate lending into a single, principles-based Credit Risk Management Guideline, with a six-month consultation seeking input on overarching principles and key content areas. A separate nine-month consultation will focus on governance and accountability issues affecting boards and senior leaders, reflecting OSFI’s concern that such risks can become systemic and bypass early warning systems. The updated 2026 liquidity guidance is intended to improve consistency in liquidity risk measurement and support long-term strategic planning, and OSFI also signalled ongoing work on a new guide to its administrative monetary penalties. OSFI set consultation periods of six months for the credit risk guideline and nine months for governance and accountability. Pending any further changes, OSFI said existing debt service expectations in Guideline B-20 will continue to complement the LTI limits.