Canada: Financial Sector Assessment Program-Intensity and Effectiveness of Federal Bank Supervision in Canada-Technical Note
IMF Staff Country Reports, March 7, 2014
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- Canada: Financial Sector Assessment Program-Intensity and Effectiveness of Federal Bank Supervision in Canada-Technical Note
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Bibliographic details
- Published: March 7, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475573480.002
Executive findings
- The paper evaluates Financial Sector Assessment Program (FSAP) intensity and effectiveness of Federal Bank supervision in Canada.
- A key element of effective supervision is a willingness to increase supervisory pressure promptly when a supervisor identifies weaknesses in an institution.
- IMF funding for Canadian banks is primarily through deposits.
- Lending by Canadian banks focuses on traditional bank products in Canada in the personal and commercial sectors.
- One key characteristic of Canada is a government housing policy that has contributed to a very safe and liquid residential mortgage finance system.
Policy implications and supervisory priorities
- Supervisors should be prepared to increase supervisory pressure promptly upon identification of institutional weaknesses.
- Continued attention to the funding profile of banks (noting primary reliance on deposits) is important for stability assessments.
- Monitoring and assessing exposures concentrated in traditional personal and commercial lending remains a supervisory priority.
- The role of government housing policy in supporting a safe and liquid residential mortgage finance system should be considered in systemic risk analysis and policy calibration.
Scope, subjects, and keywords (as described in the paper)
- Subject areas: Banking, Commercial banks, Credit bureaus, Financial crises, Financial institutions, Financial markets, Mortgages, Residential mortgages
- Keywords: banking system, Canadian bank, capital ratio, Commercial banks, core mandate, CR, Credit bureaus, Europe, finance system, financial crisis, Global, government housing policy, government policy, government support, ISCR, leverage ratio, mortgage finance system, Mortgages, OSFI modeling, OSFI senior management, OSFI superintendent, Residential mortgages, risk appetite
Publication metadata and key statistics
- Publication date: March 7, 2014
- Pages: 27
- Volume: 2014
- Issue: 070
- Series: Country Report No. 2014/070
- DOI: https://doi.org/10.5089/9781475573480.002
- Stock No: 1CANEA2014008
- ISBN: 9781475573480
- ISSN: 1934-7685
International Monetary Fund. Canada: Financial Sector Assessment Program-Intensity and Effectiveness of Federal Bank Supervision in Canada-Technical Note