OSFI Releases Strategic and Departmental Plans for Coming Months
OSFI published the strategic plan for 2019-2022 and the departmental plan for 2019-2020. The strategic plan for 2019-2022 sets out a framework for the work of OSFI and sets clear objectives. The departmental plan provides information on planned work and the results OSFI will strive to achieve during the upcoming year.
The key components of the strategic plan are the following four key goals:
- Improve regulated entities’ preparedness and resilience to financial risk
- Improve their preparedness to identify and develop resilience to non-financial risks
- Improve agility and operational effectiveness through responsible stewardship of resources
- Preserve support from Canadians and cooperation from the financial services industry by being transparent and accountable
The departmental plan highlights the key focus areas of OSFI over the coming year, including the following:
- Revise capital rules for deposit-taking institutions to implement Basel III capital and liquidity reforms
- Conduct public consultations on guidance for Canadian deposit-taking institutions on the implementation of the BCBS’ second and third phases of the market discipline framework (Pillar 3) disclosure requirements
- Modernize supervisory processes, tools, and practices through the development and implementation of new technology
- Prepare for the implementation of new international financial reporting standards including IFRS 17 on insurance contracts
- Revise guidance to ensure the sound management of reinsurance risks by insurers
- Monitor federally regulated financial institutions’ implementation of other major guidance initiatives, including the revised Guideline B-20 − Residential Mortgage Underwriting Practices and Procedures, which came into force on January 01, 2018.
- Work with federal partners to enhance the crisis preparedness framework; conduct "table top exercises" at least annually and evolve the breadth and depth of the crisis management scenarios used in these exercises
- Enhance capabilities with respect to non-financial risks and undertake further work regarding operational resilience and technology, cyber, culture, and conduct risks.
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Keywords: Americas, Canada, Banking, Insurance, Strategic Plan, Departmental Plan, Basel III, IFRS 17, Pillar 3, OSFI
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