A properly functioning financial system that inspires a high degree of confidence makes a significant contribution to Canada’s economic performance. OSFI’s role is to contribute to the safety and soundness of the Canadian financial system, while allowing federally regulated financial institutions to take reasonable risks and remain competitive.
OSFI regulates and supervises all banks in Canada and all federally incorporated or registered trust and loan companies, insurance companies, cooperative credit associations and fraternal benefit societies. It monitors the financial and economic environment to identify issues that may have a negative impact on these institutions, and intervenes as needed to protect depositors and policyholders from loss.
This is accomplished through accurate risk assessments of financial institutions and timely, effective intervention and feedback; a balanced, relevant regulatory framework of guidance and rules that meets or exceeds international minimums; and a prudentially effective, balanced and responsive approvals process.
OSFI does all this while recognizing that management and boards of directors are ultimately responsible and that financial institutions can fail.