## Canada: Financial Sector Assessment Program-Basel Core Principles for Effective Banking Supervision-Detailed Assessment of Observance

_IMF Staff Country Reports, March 7, 2014_

## Source details

**Canonical URL:** [Canada: Financial Sector Assessment Program-Basel Core Principles for Effective Banking Supervision-Detailed Assessment of Observance](https://www.imf.org/en/publications/cr/issues/2016/12/31/canada-financial-sector-assessment-program-basel-core-principles-for-effective-banking-41407)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/canada-financial-sector-assessment-program-basel-core-principles-for-effective-banking-41407/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/canada-financial-sector-assessment-program-basel-core-principles-for-effective-banking-41407/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/canada-financial-sector-assessment-program-basel-core-principles-for-effective-banking-41407/bundle-manifest.json)

## Bibliographic details
- Published: March 7, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475523157.002

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### Overview
- Report focus: Detailed assessment of observance of Basel Core Principles (BCP) for effective banking supervision in Canada.
- Key institutional focus: Office of the Superintendent of Financial Institutions (OSFI).
- Supervisory approach described: OSFI adopts a close and cooperative approach that supports the close network of federal authorities in identifying and seeking to mitigate prudential risks to the federal system.
- Expectation noted: As a world-leading regulator, OSFI could be expected to issue a comprehensive suite of risk management standards to be available to all banks, even if at a relatively high level or based largely on Basel Committee for Banking Supervision guidance.
- Subjects covered: Banking, Credit risk, Financial institutions, Financial regulation and supervision, Foreign banks, Labor, Market risk, Operational risk.

### Key findings and analysis
- Supervisory orientation:
  - OSFI’s approach is characterized as close and cooperative with federal authorities to identify and mitigate prudential risks to the federal system.
- Standard-setting expectation:
  - Given OSFI’s status as a world-leading regulator, the report expects OSFI to issue a comprehensive suite of risk management standards for all banks, potentially at a relatively high level or based largely on Basel Committee guidance.
- Risk areas highlighted (keywords retained as in source):
  - corporate governance
  - CR
  - credit risk
  - Credit risk
  - Foreign banks
  - Global
  - internal audit
  - ISCR
  - Market risk
  - Operational risk
  - parent company
  - risk appetite
  - risk assessment
  - risk management
  - risk profile
  - senior management

### Policy recommendations and implications
- Strengthen and publish comprehensive risk management standards applicable to all banks, drawing on Basel Committee for Banking Supervision guidance where appropriate.
- Maintain and support close cooperative arrangements among federal authorities to identify and mitigate prudential risks across the federal banking system.
- Ensure supervisory guidance covers key areas listed under keywords, including corporate governance, internal audit, risk appetite, risk assessment, and operational risk.

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## Content in this bundle

- **Financial Sector Structure, end 2012**
  - [Financial Sector Structure, end 2012 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr1471.pdf.md){rel="alternate" type="text/markdown"}
  - [Financial Sector Structure, end 2012 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr1471.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/canada-financial-sector-assessment-program-basel-core-principles-for-effective-banking-41407_