Office of the Superintendent of Financial Institutions
The primary purpose of the research was to explore perceptions of the Office of the Superintendent of Financial Institutions (OSFI) as the regulator and supervisor of federally regulated deposit-taking institutions. The objectives of the research included assessment of OSFI's guidance to the industry, its supervisory activities and its approvals process for regulatory approval applications.
A total of 44 interviews were conducted with 38 deposit-taking financial institutions (DTIs) regulated by OSFI, ranging from small deposit-taking institutions to domestic systemically important banks (D-SIBs). A total of 63 individuals participated in the interviews. The participants were CEOs, CFOs, CROs, CCOs and other senior executives.
The interviews were conducted either in-person or by telephone between February 14 and May 8, 2019. The average interview length was 60 minutes.
The research conducted was qualitative in nature and designed to reveal a rich range of opinions and interpretations rather than to measure what percentage of the target population holds a given opinion. As such, the results provide an indication of participants' views on the issues explored but cannot be generalized to the full population of senior executives representing those deposit-taking institutions regulated by OSFI. Rather, the findings from this research provide themes and direction. The findings cannot be used to estimate the numeric proportion or number of individuals in the population who hold a particular opinion because they are not statistically projectable.
Satisfaction with OSFI as the principal prudential regulator and supervisor of Canada's financial services industry
Focus on Risk Areas
Opportunities for improvement
In addition to prioritizing cyber/emerging technologies and the unregulated financial sector, the more common suggestions were:
Development of guidance
Balancing prudential considerations with need to compete
IFRS 9 consultation and summary of stakeholder comments
B-20: Consultation process and communication of expectations
E-21: Communication of expectations, and usefulness of the self-assessment template (asked of Small and Medium DTIs)
E-23: Communication of expectations (asked of D-SIBs)
This topic was addressed in two contexts in the interview, once with respect to guidance (asked of Small and Medium DTIs), and again with respect to supervision (asked of all DTIs).
The majority of Small and Medium DTIs perceived there to be at least some consideration in OSFI's guidance of the nature, size and complexity of DTIs:
Among the minority of smaller DTI participants who were less satisfied:
Overall evaluations of OSFI's supervision are very positive, and are widespread across all sizes and types of DTIs. Positive assessments included:
Many participants are satisfied with their supervisory team, but there are relatively small numbers of DTIs where there are opportunities for improvement:
The research findings will help OSFI assess how well it is achieving its mandate overall and will enable OSFI to improve on performance, as required, in its regulatory and supervisory activities as they pertain to federally regulated deposit-taking institutions.
The final report is available on the Library and Archives Canada website.