COMPAS Poll/Survey

OSFI Scores with New “Living Will” for the Banks: The Office of the Superintendent of Financial Institutions Earns Top Marks for Plans to Allow Banks in a Meltdown to Function without Bailouts But Lower Marks for Getting the Banks to Be More Transparent

BDO Dunwoody Weekly CEO/Business Leader Poll by COMPAS in Canadian Business

The Office of the Superintendent of Financial Institutions (OSFI) wins plaudits from the CEOs and business leaders on the COMPAS business panel for its efforts to ensure that the banking system can function without bailouts during a meltdown. OSFI likewise earns widespread support for

  • creating the template for a “bridge bank” that would take over the obligations of collapsed lenders and oversee an asset sale in the case of a crisis, and
  • requiring banks to create “living wills” to prescribe how their operations could be dismantled in the event of a crisis.

For these initiatives, OSFI earns one of the highest performance scores a government, government department, or government leader has earned in the decade that COMPAS has been compiling performance scores.

OSFI does less well on the issue of transparency. Members of the COMPAS business panel are divided about OSFI’s decision not to publish “stress test” results. OSFI’s top official, Julie Dickson, has characterized such tests as “of limited value” or “misleading”.

While earning a very high score for reforms intended to allow the banking system to function in a meltdown without subsidies, OSFI earns a less impressive score for its efforts in eliciting more transparency from financial institutions.

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