Office of the Superintendent of Financial Institutions narrows near term priorities to credit risk and accountability after trimming 52 guidance documents

In a speech on its policy and supervisory agenda, the Office of the Superintendent of Financial Institutions said it has streamlined its guidance library and narrowed its near-term non-financial priorities to two areas, credit risk management and senior leader accountability, while deferring or narrowing other initiatives. Over the past year it removed 52 documents and more than 600 pages of redundant, obsolete or trivial material. The refocusing was linked to risks highlighted in its Annual Risk Outlook, particularly real estate secured lending, non-bank financial institutions, and funding and liquidity, and to industry feedback that the pace and volume of change needed to be manageable. The speech also highlighted ongoing capital and liquidity guideline work and a more risk-sensitive calibration of requirements where evidence supports it. OSFI cited proposed revisions to the Capital Adequacy Requirements guideline to lower capital requirements for Corporate SME and other selected commercial exposures, and a recent reduction in capital requirements for certain domestic infrastructure investments by property and casualty insurers. It also said it is taking a measured approach to artificial intelligence and broader digitalization, with attention to governance, model use and oversight, and is placing greater emphasis on integrity and security risks including fraud, cyber risk and foreign interference.