OSFI’s Key Performance Indicators Methodology

1. Percentage of estimated recoveries on failed institutions (percentage recovered per dollar of claim).

This measure is a proxy for whether OSFI intervened early enough to protect depositors and/or policyholders.

The higher the percentage, the better the performance.

2. Percentage of institutions with a Composite Risk Rating (CRR) of low or moderate.

The CRR is an assessment of a federally regulated financial institution’s risk profile.

The higher the percentage, the better the performance.

3. Percentage of assessment programs which deem OSFI’s regulatory and supervisory framework as being consistent with international standards.

(Number of reviews resulting in an overall “compliant” rating) / (Number of reviews)

Example:
Three key international assessments of Canada’s regulatory and/or supervisory frameworks were completed during 2014-15, each resulted in an overall “compliant” rating:

• March 2014 International Monetary Fund (IMF) Financial Sector Assessment Program (FSAP) - Basel Core Principles for Effective Banking Supervision
• March 2014 IMF FSAP - for Insurance Core Principles
• June 2014 Basel Committee on Banking Supervision RCAP

4. Percentage of (financial institutions) supervisory rating increases^{Footnote 1} that are two or more levels within any rolling three month period.

Any supervisory rating increases that are two or more levels within a rolling three month period may indicate that risk assessment and/or intervention activities were not timely.

The lowest the percentage, the better the performance.

5. Percentage of supervisory letters that are issued within established standards.

6. Percentage of industry stakeholders who rate OSFI as good or very good at responding in a timely manner to market changes or to industry suggestions that guidance needs updating.

7. Percentage of industry stakeholders that rate OSFI’s guidance as somewhat or very effectively indicating OSFI’s expectations.

8. Percentage of industry stakeholders that rate OSFI as good or very good at consulting with industry on the development of guidance.

9. Percentage of industry stakeholders that understand somewhat or very well the basis upon which OSFI makes its decisions as part of the approval process.

10. Percentage of completed applications for FI regulatory approvals that are processed within established standards.

(Number of regulatory approvals that met the standard) / (Total number of regulatory approvals)

Note: Regulatory approvals include superintendent deemed approvals, superintendent non-deemed approvals, and ministerial approvals. Each of these approval types has a different standard approval processing time.

The approval processing time is calculated from the date of receipt of a complete application until the date of approval.

11. Percentage of (pension plan) supervisory rating increases^{Footnote 2} that are two or more levels within any rolling three month period.

Large supervisory rating increases point to potential lack of proactivity in supervisory activities.

The lower the percentage, the better the performance.

12. Percentage of industry stakeholders that rate OSFI as “somewhat effective” or “very effective” in monitoring and supervising their pension plan(s).

13. Percentage of industry stakeholders that rate OSFI guidance as “somewhat effective” or “very effective” in providing an indication of OSFI’s expectations.

14. Percentage of members of a panel of three Canadian peer actuaries selected by an international independent body that attest that the Office of the Chief Actuary (OCA) provides accurate, high quality and professional services and advice.

15. Use of the OCA’s work by the Office of the Auditor General (OAG) as an independent evidence for the Public Accounts Canada.

16. Percentage of reports that are provided to the Minister for tabling in Parliament as per statutory deadlines.

17. Percentage of members of a panel of Canadian peer actuaries selected by an international independent body that deem the Canada Pension Plan (CPP) actuarial valuation accurate and high quality.

18. Percentage of recommendations from the previous peer review report and within the scope and influence of the OCA that are implemented before the next peer review.

19. Percentage of reports on the CPP and the Old Age Security Program (OAS) that are provided to the Minister for tabling in Parliament as per statutory deadlines.

20. Percentage of Public Pension and Insurance Plans valuations that are deemed accurate and high quality by an independent actuarial firm.

21. Percentage of reports on actuarial valuation of Public Pensions and Insurance Plans that are provided to the President of Treasury Board for tabling in Parliament as per statutory deadlines.

22. Percentage of reports on actuarial valuation of the Canada Student Loan Program (CSLP) that are used by the Office of the Auditor General (OAG) as an external audit evidence for the Public Accounts of Canada.

23. Percentage of actuarial reports on CSLP and Employment Insurance (EI) programs that are submitted to the Minister/ Employment Insurance Commissioner for tabling in Parliament as per statutory deadlines.