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.
Related Links
Keywords: Americas, Canada, Banking, Insurance, Strategic Plan, Departmental Plan, Basel III, IFRS 17, Pillar 3, OSFI
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Dieter Van der Stock
IFRS subject matter expert; LDTI subject matter expert; accounting authority; risk management specialist
Gavin Conn
Experienced life actuary; background in economic capital modeling; ALM specialist; IFRS 17 researcher
Previous Article
BCBS Updates Status of Basel Adoption in Member JurisdictionsRelated Articles
OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks
The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.