Office of the Superintendent of Financial Institutions narrows near term priorities to credit risk management and senior leader accountability

In remarks at an industry panel, the Office of the Superintendent of Financial Institutions outlined a more focused supervisory and policy approach, saying it has narrowed its non-financial near-term priorities to credit risk management and senior leader accountability and has deferred or narrowed other initiatives. The shift follows a review of its full policy and supervisory agenda and is tied to risks highlighted in its Annual Risk Outlook, including real estate secured lending, non-bank financial institutions, funding and liquidity, and broader macro vulnerabilities. The review also led OSFI to remove 52 documents and more than 600 pages of redundant, obsolete or trivial material from its guidance library. Alongside this reprioritisation, it said it is advancing capital and liquidity guideline updates, including proposed revisions to the Capital Adequacy Requirements guideline that would lower capital requirements for Corporate SME and selected commercial exposures, and it recently reduced capital requirements for certain domestic infrastructure investments by property and casualty insurers. The remarks also pointed to a measured approach to artificial intelligence and digitalisation, with emphasis on governance, model use, oversight and accountability, and to greater attention to integrity and security risks such as fraud, cyber risk and foreign interference.