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

_IMF Staff Country Reports, August 8, 2025_

## Source details

**Canonical URL:** [Canada: Financial Sector Assessment Program-Detailed Assessment of Observance-Basel Core Principles for Effective Banking Supervision](https://www.imf.org/en/publications/cr/issues/2025/08/08/canada-financial-sector-assessment-program-detailed-assessment-of-observance-basel-core-569532)

## Other formats

- [Markdown version](/en/publications/cr/issues/2025/08/08/canada-financial-sector-assessment-program-detailed-assessment-of-observance-basel-core-569532/index.md)
- [Structured JSON version](/en/publications/cr/issues/2025/08/08/canada-financial-sector-assessment-program-detailed-assessment-of-observance-basel-core-569532/index.json)
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## Bibliographic details
- Published: August 8, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229022002.002

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### Overview and scope
- Focus: Canada’s Detailed Assessment of Observance—Basel Core Principles for Effective Banking Supervision report.
- Date: August 8, 2025.
- Publication series: IMF Staff Country Reports; Country Report No. 2025/235; Issue: 235; Volume: 2025.
- Pages: 427.
- DOI: https://doi.org/10.5089/9798229022002.002
- Stock No: 1CANEA2025007
- ISBN: 9798229022002
- ISSN: 1934-7685
- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Credit risk, Crime, Financial regulation and supervision, Financial sector policy and analysis, Financial sector stability, Market risk, Operational risk.

### Key findings on supervisory frameworks and practices
- Banking supervision in Canada is described as "well-functioning and mature", overseeing a "complex, concentrated and large banking system."
- Office of the Superintendent of Financial Institutions’ (OSFI) new supervisory framework is "sound and fit for purpose."
- Supervision could be more intrusive through:
  - More frequent on-site reviews.
  - Deeper on-site reviews, notably on banks’ risk measurement models.
  - More testing of the effectiveness of banks’ risk management and internal control policies.
- The sanctioning framework for anti-money laundering and countering the financing of terrorism (AML/CFT) is characterized as "a weak instrument to induce compliance."
- The supervisory framework "suffers from severe resource constraints to supervising high-risk entities."
- Canada "acknowledges the importance of rigorous, ongoing supervisory review work."

### IMF recommendations and supervisory considerations
- IMF position to be considered by OSFI:
  - Further increasing the frequency of prudential reviews would enhance supervisory outcomes.
  - Further increasing the intensity of prudential reviews would enhance supervisory outcomes.
- OSFI will consider the IMF’s position while being "mindful of the resilience evident in the Canadian financial system."

### Keywords and cross-cutting areas
- Keywords include: accountability Board, Anti-money laundering and combating the financing of terrorism (AML/CFT), capital model review committee, Caribbean, commercial paper, Credit risk, Financial sector stability, Global, IMF's Monetary, Market risk, Operational risk, Risk committee, risk management, supervisory committee.

*Source: Canada: Financial Sector Assessment Program-Detailed Assessment of Observance—Basel Core Principles for Effective Banking Supervision (IMF Staff Country Reports, August 8, 2025).*

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## Content in this bundle

- **Introduction and Methodology**
  - [Introduction and Methodology (Markdown version)](/-/media/files/publications/cr/2025/english/1canea2025007-source-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Introduction and Methodology (PDF)](/-/media/files/publications/cr/2025/english/1canea2025007-source-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2025/08/08/canada-financial-sector-assessment-program-detailed-assessment-of-observance-basel-core-569532_