In published remarks on resilience, competition and innovation, the Office of the Superintendent of Financial Institutions set out a more risk-focused supervisory approach and said a streamlined approvals framework will launch in late June to make the path to a federal licence clearer and more predictable for targeted new entrants, including credit unions seeking federal continuance. Its April Annual Risk Outlook prioritises RESL and mortgage, NBFI, and funding and liquidity risks, alongside wholesale credit, AI, cyber, integrity and security, and third-party risks, with greater emphasis on earlier risk identification, horizon scanning, and coordination with Canada's security and intelligence community. The authority also described a proportional supervision agenda aimed at reducing unnecessary burden without lowering prudential standards. Its latest Quarterly Release focuses on credit, liquidity, governance, and integrity and security, with expectations scaled by size, complexity, and risk profile. Measures cited include removing more than 600 pages of redundant or obsolete material from the guidance library, consolidating credit risk expectations in a new Credit Risk Management Guideline, and using Quarterly Releases and the Industry Day model to give firms more visibility on upcoming consultations and guidance. For credit unions considering federal oversight, it highlighted three tests: readiness for a federal supervisory framework, financial resilience and sustainability, and a viable path to provincial discontinuance with stakeholder alignment. On governance and innovation, the remarks reiterated that boards and senior management should apply accountability, testing, and controls to AI, and pointed to the consultation on senior leader accountability launched through the January 2026 Quarterly Release, with comments due by October 31, 2026. OSFI also said revisions to the Capital Adequacy Requirements guideline consulted on in November 2025, including more risk-sensitive treatment for certain commercial exposures and lower standardized risk weights for some SME and corporate lending, are expected to be finalized in September.
Office of the Superintendent of Financial Institutions2026-05-25
Office of the Superintendent of Financial Institutions outlines supervisory priorities and late June launch of streamlined approvals for targeted new entrants
The Office of the Superintendent of Financial Institutions outlined a more risk-focused, proportional supervisory approach, including a streamlined approvals framework for targeted new entrants and earlier risk identification in coordination with Canada’s security and intelligence community. Its latest Annual Risk Outlook and Quarterly Release prioritise residential mortgage, non-bank financial institution, funding and liquidity, wholesale credit, AI, cyber, integrity and security, and third-party risks, and detail measures such as consolidating expectations in a new Credit Risk Management Guideline and removing redundant guidance. OSFI also reiterated governance expectations for AI and signalled that revisions to the Capital Adequacy Requirements guideline, including more risk-sensitive treatment of certain commercial exposures and lower standardized risk weights for some SME and corporate lending, are expected in September.