Opening remarks to the Standing Committee on Banking, Commerce, and the Economy on OSFI's role in banking

Opening remarks: Superintendent, Peter Routledge

Date: May 10, 2023

Good afternoon, Madame Chair and members of the Committee.

Thank you for having me here today to speak with you about your study on business investment in Canada. Specifically, you have asked me to speak to you about the status of the Canadian Banking Sector.

First, I would like to begin by acknowledging that we are gathered today on the traditional un-ceded territory of the Anishinabe Algonquin Nation who have lived on and been the caretakers of this land for millennia.

I will keep my opening remarks brief today to provide more time to address your questions.

OSFI ensures that Federally Regulated Financial Institutions, or FRFIs (IFF en français), are in sound financial condition, and contributes to public confidence in the Canadian financial system.

We do so by providing both the regulatory and supervisory framework for Canada’s FRFIs, to help ensure that they control and manage risks.

We have witnessed significant volatility in banking systems outside Canada.

Canada’s banking system has not experienced that level of volatility and you may ask why?

Since OSFI’s inception in 1987, Canada has built a resilient financial system populated by significant margins of safety.

For that reason, I believe our banking system’s resilience will prove its worth this year and beyond.

And, we at OSFI never rest easy. We keep our eyes on the horizon to see and respond to emerging risks when they appear.

We take the stability of Canada’s financial system very seriously.

As a prudential regulator, it is vital that we are prepared to act early in response to uncertainty and volatility.

To do this there are three elements that guide us:

First, when confronted with weakening financial institutions, we will take swift and decisive action to protect the interests of depositors and creditors.

Second, we remain clear-eyed and transparent about the risks to the financial sector, a principle we followed when we published our Annual Risk Outlook on April 18.

Third, we continue to advance key regulatory policies necessary to promote public confidence in the Canadian financial system.

Thank you. I am happy to answer your questions.