opinion

Now is the time for OSFI to plot its own path to protect Canadian banks.

Don’t expect Canada’s banking regulator to follow lockstep with its U.S. peers by eliminating its focus on reputation risk for financial institutions.

Superintendent of Financial Institutions Peter Routledge delivered that message this week when he was asked about the shifting risk posture of American regulators under orders from U.S. President Donald Trump.

The Federal Reserve Board, the Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. have each announced they will no longer supervise banks for reputational risks that can result in scandals or financial losses stemming from mismanagement, malpractice and misconduct.

That regulatory pivot – precipitated by Mr. Trump’s escalati

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