OSFI published a summary of the findings of the 2018-19 online financial institutions survey of all OSFI-supervised active deposit-taking institutions and insurance companies. The objective of the survey was to provide a high-level assessment of the performance of OSFI as a prudential regulator and supervisor and to compare the 2018 results from a previous study that was conducted in 2016. OSFI had, in the Fall of 2018, commissioned Phoenix Strategic Perspectives, an independent research firm, to conduct this confidential survey with executives of the financial institutions that OSFI regulates.
The results show that overall satisfaction of OSFI as a regulator and supervisor remains strong. The highest positive ratings in the 2018 survey pertain to satisfaction with the effectiveness of OSFI in supervising financial institutions, consistent with previous results. In addition, there has also been a notable improvement in the scaling in guidance and supervisory activities, which was identified as an area for improvement in the 2016 survey. Areas of improvement identified in 2018 relate to the response time of OSFI to market developments or industry suggestions that guidance needs updating and the development of guidance that balances prudential considerations and the need for institutions to compete. However, IT security, including cyber risk, continues to be an area that the institutions would like to see OSFI focus on in the coming years. Additionally, the deposit-taking institutions pointed to a variety of other risks while insurance companies focused on environmental risks, regulatory burden, and issues related to IFRS 17 on insurance contracts.
Keywords: Americas, Canada, Banking, Insurance, Financial Institution Survey, Research, IFRS 17, Cyber Risk, OSFI
Previous ArticleEBA Report Assesses Regulatory Framework for Fintech Activities
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.