OSFI Prioritizes Resilience and Competitiveness at Global Risk Institute Summit 2025
At the Global Risk institute Summit 2025, Superintendent of Financial Institutions (OSFI) Peter Routledge participated in a fireside chat, outlining the organization’s commitment to both maintaining a sound Canadian financial system and ensuring its competitiveness in a shifting global landscape.
Routledge emphasized OSFI’s proactive approach to regulatory refinement, stating the organization has established “an annual discipline of refining our regulatory guidelines and advisories to find opportunities to remove unnecessary burden.” This focus aims to reduce regulatory burden, concentrate on the most critical risks, and uphold institutional resilience amidst uncertainty. He highlighted a recent example of this adaptability, noting OSFI paused the implementation of the Basel III output floor last year due to a widening gap with international peers, including the U.S., to “preserve a fair playing field while keeping resilience intact.”
Responding to a question about potential deregulation in the U.S. and the impact of tariffs, Routledge assured the audience OSFI will be “proactive,” acting “early, not wait” to address shifting risks. He described the organization’s approach as “incremental,” making “changes in measured steps” to provide clarity and adjustment time for financial institutions while safeguarding the system. He underscored that a strong financial system is “a catalyst for national prosperity” and Canada’s resilience is a “strategic asset.” OSFI’s response to such external factors will be “prudent,” protecting depositors and policyholders while enabling institutions to support the Canadian economy.
The conversation also addressed access to capital for small and medium-sized businesses. Routledge explained OSFI is working to “align capital requirements with actual risk,” believing that “regulatory efficiency reduces unnecessary capital strain without compromising safety and soundness.” This, he stated, “frees up capacity that banks can use to extend more credit.” He reiterated OSFI’s broader focus on regulatory efficiency through ongoing refinement of guidelines and advisories.
(Image caption): Peter Routledge,OSFI Superintendent (left),Sonia Baxendale,President and CEO,Global Risk Institute (right) at the Global Risk Institute Summit 2025.
