In a speech to Certified Financial Supervisor graduates in Toronto, the Office of the Superintendent of Financial Institutions set out how it expects prudential supervision to adapt to faster-moving, more interconnected technology-driven risks while leaving space for innovation. Superintendent Peter Routledge framed the shift as a more holistic, outcomes-focused approach that connects prudential standards with operational, integrity and security risks, alongside efforts to modernize OSFI’s approvals processes and, where prudent, ease entry for new players. Routledge argued for acting early and building buffers in good times, pointing to prior use of the Domestic Stability Buffer as crisis “insurance” that is expensive to rebuild once stress hits. He reiterated that OSFI’s mandate is the safety and soundness of federally regulated financial institutions rather than direct consumer protection, and said supervision will need to remain judgment-based and collaborative across borders as cyber threats, geopolitical instability and systemic shocks intensify. On capital treatment, OSFI will continue to assess whether risk-based adjustments could support market development without compromising resilience, including whether current risk weights may be unintentionally discouraging certain types of investment, and estimated that banks could extend nearly CAD 1 trillion in additional credit while remaining above current capital minimums. Any further changes to risk weightings would be subject to a public consultation process through CAR 2027.

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