In remarks on regulatory and supervisory modernization, the Office of the Superintendent of Financial Institutions outlined a shift in its risk appetite to give greater weight to sustainable economic growth and competition while retaining financial system resilience as its primary responsibility. The approach is intended to avoid unnecessarily constraining risk-taking, particularly where post-financial crisis requirements disadvantage smaller federally regulated financial institutions or deter new entrants. OSFI identified three areas of work: tailoring capital and liquidity requirements, easing entry into the federally regulated system and removing redundant, obsolete or trivial regulation. It plans further capital amendments aimed at growth and competition, including potential reductions in capital intensity and stress-testing burdens for small and medium-sized deposit-taking institutions, simpler capital structures for smaller institutions and measures to narrow funding-cost imbalances. The agenda builds on the reduction in the Domestic Stability Buffer, the earlier delay to standardized capital floor increases and the Streamlined Approvals Framework, under which OSFI aims to process new-entrant applications within one year.
2026-09-11Office of the Superintendent of Financial Institutions
Canada’s Office of the Superintendent of Financial Institutions outlines risk appetite shift toward growth and competition while preserving resilience
The Office of the Superintendent of Financial Institutions outlined a risk appetite shift that preserves resilience as its primary responsibility while giving greater weight to economic growth and competition. Planned work includes more tailored capital and liquidity requirements, simpler entry for new institutions and annual removal of redundant, obsolete or trivial regulation.