OSFI reintroduces non-bank financial institution risk in its latest Annual Risk Outlook
OTTAWA, ON, April 14, 2026 /CNW/ – Today, the Office of the Superintendent of Financial Institutions (OSFI) released its 2026-2027 Annual Risk Outlook (ARO). It identifies the top risks facing Canada’s financial institutions and the supervisory and regulatory actions OSFI is taking in response.
This year, our ARO highlights the following key risks:
- Real estate secured lending (RESL) risk
- Non-bank financial institution (NBFI) risk
- Liquidity and funding risk
While two of the prioritized risks in this year’s ARO are consistent with last year, the environment around them has changed. Housing and mortgage pressures have increased in some parts of the country. Risks outside the traditional banking system have expanded, including in areas where non-bank lenders and investment funds are taking on more borrowing. Global uncertainty has the potential to affect confidence in funding markets. Although cost and availability of funding have remained stable, the speed at which a liquidity event could unfold remains a key concern.
OSFI continues to calibrate regulatory capital requirements to ensure alignment with evolving risks. Risk weights in some areas may increase while others may decrease over time. These adjustments are considered normal maintenance and help maintain balance between risks and capital levels.
Quote
“Canadians can be confident that OSFI acts early, transparently, and decisively to strengthen financial system resilience in an uncertain economic and geopolitical environment.”
– Peter Routledge, Superintendent of Financial Institutions
Quick facts
- The Annual Risk Outlook is published once a year in the spring. If risks in the financial system evolve significantly, an update to it may be published in the fall.
- OSFI is developing a comprehensive Credit Risk Management (CRM) Guideline to strengthen how institutions manage credit risk. OSFI is seeking input on the initial consultation document by July 29, 2026.
- Revisions to liquidity adequacy requirements targeting specific retail deposit categories will take effect May 1, 2026. Further updates will consider industry proposals to improve risk sensitivity. Consultation will launch as part of the second quarterly release on May 21, 2026.
Related links
- OSFI’s policy releases and announcements schedule – Office of the Superintendent of Financial Institutions
- Consultative document on Credit Risk Management
- Consultation: Internal Liquidity Adequacy Assessment Process (ILAAP) Discussion Paper
- Benchmarking Canadian Bank Capital Ratios to International Peers – Technical Note – February 2026
SOURCE Office of the Superintendent of Financial Institutions
