OSFI Reintroduces Non-Bank Financial Institution Risk in Annual Risk Outlook
Summary
OSFI released its 2026-2027 Annual Risk Outlook identifying top risks facing Canadian financial institutions including real estate secured lending risk, non-bank financial institution risk, and liquidity and funding risk. The outlook notes increased housing and mortgage pressures in some regions and expanded risks outside the traditional banking system where non-bank lenders and investment funds are taking on more borrowing. Global uncertainty may affect funding market confidence. OSFI continues calibrating regulatory capital requirements with risk weights subject to adjustment over time.
What changed
OSFI's 2026-2027 Annual Risk Outlook reintroduces non-bank financial institution (NBFI) risk as a key concern alongside real estate secured lending and liquidity/funding risks. The outlook notes expanded risks outside traditional banking where non-bank lenders and investment funds are increasing borrowing activity. While two risks are consistent with prior year, the operating environment has shifted with increased housing pressures and global uncertainty potentially affecting funding markets.\n\nFinancial institutions should monitor these risk indicators and prepare for potential regulatory capital adjustments as OSFI continues calibrating requirements. Upcoming compliance milestones include the Credit Risk Management guideline consultation closing July 29, 2026, and revised liquidity adequacy requirements taking effect May 1, 2026, with further consultation launching May 21, 2026.
What to do next
- Monitor OSFI's Annual Risk Outlook for updates on identified risks
- Submit feedback on Credit Risk Management Guideline consultation by July 29, 2026
- Review liquidity adequacy requirements ahead of May 1, 2026 effective date
Archived snapshot
Apr 15, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
OSFI reintroduces non-bank financial institution risk in its latest Annual Risk Outlook
News release
-
Ottawa -
April 14, 2026
Today, the Office of the Superintendent of Financial Institutions (OSFI) released its 2026-2027 Annual Risk Outlook (ARO). It identifies the top risks facing Canada’s financial institutions and the supervisory and regulatory actions OSFI is taking in response.
This year, our ARO highlights the following key risks:
- Real estate secured lending (RESL) risk
- Non-bank financial institution (NBFI) risk
- Liquidity and funding risk While two of the prioritized risks in this year’s ARO are consistent with last year, the environment around them has changed. Housing and mortgage pressures have increased in some parts of the country. Risks outside the traditional banking system have expanded, including in areas where non-bank lenders and investment funds are taking on more borrowing. Global uncertainty has the potential to affect confidence in funding markets. Although cost and availability of funding have remained stable, the speed at which a liquidity event could unfold remains a key concern.
OSFI continues to calibrate regulatory capital requirements to ensure alignment with evolving risks. Risk weights in some areas may increase while others may decrease over time. These adjustments are considered normal maintenance and help maintain balance between risks and capital levels.
Quote
Canadians can be confident that OSFI acts early, transparently, and decisively to strengthen financial system resilience in an uncertain economic and geopolitical environment.
Quick facts
- The Annual Risk Outlook is published once a year in the spring. If risks in the financial system evolve significantly, an update to it may be published in the fall.
- OSFI is developing a comprehensive Credit Risk Management (CRM) Guideline to strengthen how institutions manage credit risk. OSFI is seeking input on the initial consultation document by July 29, 2026.
- Revisions to liquidity adequacy requirements targeting specific retail deposit categories will take effect May 1, 2026. Further updates will consider industry proposals to improve risk sensitivity. Consultation will launch as part of the second quarterly release on May 21, 2026.
Contacts
OSFI – Media Relations
343-550-9373
Related links
- OSFI’s policy releases and announcements schedule
- Consultative document on Credit Risk Management
- Consultation: Internal Liquidity Adequacy Assessment Process (ILAAP) Discussion Paper
- Benchmarking Canadian Bank Capital Ratios to International Peers – Technical Note – February 2026
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Date modified:
2026-04-14
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