The Office of the Superintendent of Financial Institutions released its 2026-2027 Annual Risk Outlook identifying the top risks facing Canada’s financial institutions and the supervisory and regulatory actions it is taking in response. The outlook prioritises real estate secured lending (RESL) risk, non-bank financial institution (NBFI) risk and liquidity and funding risk. OSFI notes that while two of the prioritised risks are consistent with the prior year, the surrounding environment has shifted, with housing and mortgage pressures increasing in some parts of the country and risks outside the traditional banking system expanding as non-bank lenders and investment funds take on more borrowing. It highlights that global uncertainty could affect confidence in funding markets and that, despite stable funding cost and availability, the speed at which a liquidity event could unfold remains a key concern. The outlook also points to ongoing calibration of regulatory capital requirements, with risk weights in some areas potentially increasing and others decreasing over time as part of normal maintenance to align capital with evolving risks.
Office of the Superintendent of Financial Institutions 2026-04-14
Office of the Superintendent of Financial Institutions sets out real estate lending, NBFIs and liquidity as priority risks in its 2026–27 Annual Risk Outlook
The Office of the Superintendent of Financial Institutions has published its 2026-2027 Annual Risk Outlook, prioritising risks related to real estate secured lending, non-bank financial institutions, and liquidity and funding. OSFI highlights rising housing and mortgage pressures, growing risk outside the traditional banking system, and the potential for rapid liquidity events. The outlook also signals ongoing calibration of regulatory capital requirements, with risk weights expected to adjust over time to better align with evolving risks.