OSFI Releases Annual Report 2021-2022
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021. The report covers activities of the regulator from April 01, 2020 to March 31, 2021, outlining actions taken to support stakeholders through the COVID-19 crisis, along with the progress in delivering on the 2019-2022 Strategic Plan of OSFI. The report also mentions some of the key upcoming deliverables of policy work for the coming year.
A notable deliverable during the year, was the March 2021 public consultation on revisions to the Capital Adequacy Requirements (CAR) Guideline, the Leverage Requirements (LR) Guideline, and the Liquidity Adequacy Requirements (LAR) Guideline, with a view to implementing these changes in early 2023. The proposed revisions to the CAR and LR guidelines reflect the domestic implementation of the final Basel III reforms. All three guidelines also include proposed revisions to reflect specific capital and liquidity requirements for small and medium-sized institutions (SMSBs). In March 2021, OSFI also released a draft SMSB Capital and Liquidity Guideline to help stakeholders understand how the CAR, LR and LAR guidelines apply to SMSBs including deposit-taking subsidiaries of D-SIBs. Over the coming year, OSFI plans to:
- advance its understanding of climate-related risks and will release a summary of comments received during the climate-related risk consultations, along with the next steps in this area for the 2021-22 fiscal year.
- continue to focus on assessing how institutions use and manage artificial intelligence/machine learning as well as developing additional principles to address emerging risks resulting from their use; this will be used to inform an industry letter on advanced analytics and model risk and a revised model risk guideline, which are to be published in the first quarter of 2022 and 2022-23, respectively.
- launch a comprehensive review of Guideline E-13 (Compliance Management) in 2022. Earlier, in October 2020, OSFI had launched a consultation on the supervisory activities related to anti-money laundering/anti-terrorist financing (AML/ATF), consequent to which, on May 17, 2021—slightly after the period covered by this annual report—OSFI announced that it will rescind Guideline B-8 (Deterring & Detecting Money Laundering and Terrorist Financing), effective July 26, 2021.
Related Links
Keywords: Americas, Canada, Banking, Mortgage Insurance, Basel, Regulatory Capital, Liquidity Risk, SMSBs, D-SIBs, Compliance Risk, Climate Change Risk, ESG, AML/CFT, Regtech, Modeling Risk, Credit Risk, Predictive Analytics, OSFI
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.
