News & Updates
OSFI releases Annual Risk Outlook for 2025-2026, highlighting top threats to the Canadian financial system
April 08, 2025
The Office of the Superintendent of Financial Institutions (OSFI) has released its Annual Risk Outlook for 2025–2026, outlining the top threats to the Canadian financial system.
The four key risks, listed in order of importance, are:
- Integrity and Security Risk: Heightened geopolitical tensions, rapid technological advancements and increased reliance on a complex network of third parties have pushed integrity and security risks to the top of OSFI’s priority list.
- Wholesale Credit Risks: Despite recent interest rate cuts, OSFI says that businesses remain vulnerable to macroeconomic uncertainties, elevated debt servicing costs and weakening consumer demand that can lead to refinancing challenges.
- Funding and Liquidity Risks: OSFI says renewed uncertainty within financial markets could challenge the currently stable liquidity and funding environment for financial institutions if it drives market participants to reassess their risk appetites.
- Real Estate Secured Lending and Mortgage Risks: Many borrowers are facing interest rates that are higher than their original mortgage rate upon renewal, despite recent interest rate cuts.
To read more about OSFI’s views on the current risk environment and the actions it plans to take in response, click on more information below:
