OSFI Framework
CategoryFinancial Market Regulation
Office of the Superintendent of Financial Institutions (OSFI) is an independent Canadian federal government agency that regulates and supervises Federally Regulated Financial Institutions (FRFI) to control their risks and determine whether they are in sound financial condition.
Financial Risk Management
Safety and Soundness of Financial Institutions
OSFI plays an important oversight role on the Canadian financial market, by taking a risk-based approach to reflect the nature, size, complexity and risk profile of an institution, and providing regulatory approvals for certain types of transactions.
Federally regulated entities include all banks in Canada, and all federally incorporated or registered trust/loan companies, insurance companies, cooperative credit associations, fraternal benefit societies and private pension plans.
OSFI also develops rules and contributes to new accounting, auditing and actuarial standards — all of which must balance the goals of safety and soundness with the need for institutions to operate within a competitive marketplace.
Internationally, OSFI has been working with the Basel Committee on Banking Supervision (BCBS) to improve the regulation and oversight of financial institutions, and implementing Basel III — a global, voluntary regulatory framework on bank capital adequacy, stress testing and market liquidity risk control (a.k.a. the 3rd Basel Accord).
