As part of its first quarterly release of 2026, the Office of the Superintendent of Financial Institutions (OSFI) has finalized its new liquidity guidance and commenced consultations on credit risk management and accountability for boards and senior leaders.
“Through this release, OSFI aims to improve prudential clarity without over-burdening institutions or compromising the resilience of Canada's financial system,” said Peter Routledge, superintendent of financial institutions, in a news release.
In its quarterly release, OSFI gave updates on creating a guide for its administrative monetary penalties and maintaining loan-to-income (LTI) limits, complemented by the debt service expectations in Guideline B-20.
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Following a pilot, OSFI found that the LTI limits reduced the build‑up of highly leveraged residential mortgage borrowers and therefore decreased systemic risk.
On Jan. 8, OSFI announced that it has paused a planned public consultation on Guideline B-15’s disclosure expectation for financed emissions relating to off-balance-sheet assets under management, as well as deferred implementation.
On Feb. 12, OSFI will hold an Industry Day on the subjects covered by its quarterly release. At the virtual event, stakeholders who have registered to attend can ask questions.
In its news release, OSFI explained that its quarterly release builds on priorities identified in its annual and semi-annual risk outlook, which discussed the most significant risks plaguing the Canadian financial system.
“OSFI's approach to regulatory oversight is principles-based, proportionate, and focused on the risks that matter most,” Routledge said.
OSFI shared that its quarterly release shows its oversight and policy work and its efforts to engage industry on critical and impactful issues.
“OSFI's continued approach to smart oversight will help Canadian institutions thrive during this period of uncertainty,” Routledge said.
Credit risk guideline
As part of its quarterly release, OSFI is consolidating existing credit risk management guidance for mortgage lending, commercial real estate, and corporate lending into the credit risk management guideline.
OSFI noted that the consolidated guideline will reflect overarching principles and align with international best practices. OSFI added that the new guideline will aim to increase regulatory and supervisory efficiency and decrease complexity and compliance burden for institutions.
OSFI shared that a six-month consultation will invite input on key content areas and principles.
Board accountability consultation
As part of its quarterly release, OSFI is beginning a nine-month consultation on governance and accountability issues relevant to boards and senior leaders.
In its news release, OSFI explained that governance and accountability risks can endanger financial institution resilience and manifest as systemic issues that evade early warning systems.
According to OSFI, through strong governance and accountability, institutions can remain resilient, manage risk, and ensure public trust.
Finalized liquidity guidance
As part of its quarterly release, OSFI is refining the Liquidity Adequacy Requirements Guideline for 2026. OSFI claimed that the changes will promote consistent liquidity risk measurement and better long-term strategic planning.