Canada's Office of the Superintendent of Financial Institutions tells committee it is adapting supervision toward earlier risk detection and streamlined oversight

In prepared remarks to a committee, the Office of the Superintendent of Financial Institutions said it is adjusting its supervisory approach as risks re-intensify across the global financial system. It pointed to geopolitical conflict, trade tensions, technological disruption, artificial intelligence-driven cyber threats, affordability pressures and the prospect of slower global growth. Against that backdrop, OSFI said it is placing greater emphasis on early risk identification, clearer accountability, operational resilience and more focused, risk-based supervision, while seeking to preserve financial-system resilience without discouraging lending, innovation or competition. The remarks also set out a parallel effort to simplify regulation and supervision. OSFI said it is working to reduce unnecessary complexity, improve clarity in its regulatory framework, remove duplication and sharpen guidance and supervisory tools around the areas that matter most from a prudential perspective. It added that it is taking a more proportionate and streamlined approach where that can support growth, responsiveness and new entrants while maintaining resilience. In discussing access to finance for small- and medium-sized enterprises, OSFI said prudential regulation has a role but banks also have scope to adjust their business models and risk appetites to support entrepreneurs. The agency said Canadian financial institutions remain well capitalized, well regulated, profitable and resilient.