OSFI Risk Management

In response to changes in banking laws and international standards (e.g., the Basel Capital Framework), and changing market conditions (e.g., the introduction of new products such as synthetic collateralized loans, derivatives), the Office of the Superintendent of Financial Institutions (OSFI) frequently issues new and updated guidelines impacting Canadian banks’ risk management practices and capital adequacy standards. The industry’s aim is to ensure these guidelines and standards promote safety and soundness, without impairing the global competitiveness of the Canadian banking industry. The CBA also advocates for competitive equity between proposed Canadian rules and the corresponding rules applicable to major market competitors.