On May 22, 2025, OSFI launched its second quarterly release for 2025 with a singular focus on liquidity. OSFI identified funding and liquidity as the most prevalent risks facing Canadian deposit-taking institutions while launching two consultations relevant to Federal credit unions:  

• a 60-day consultation on the Liquidity Adequacy Requirements (LAR); and  

• a 90-day consultation on a discussion paper describing a more structured supervisory review process for liquidity risk in Canadian deposit-taking institutions, called the Internal Liquidity Adequacy Assessment Process (ILAAP).   

The proposed revisions to the LAR Guideline (2026) build on the 2025 version of the Guideline. The revised Guideline will be published in January 2026 for implementation in 2026. This includes proposed new funding categories for deposits involving non-bank financial intermediaries and for products such as structured notes, a type of deposit where returns are linked to the value of other securities. These proposed updates complement previous updates made on intraday liquidity in the LAR Guideline, including the introduction of a new Intraday Liquidity Regulatory Return, developed in collaboration with industry.  

Deposit-taking institutions were not OSFI’s only focus, as it also launched two consultations for insurers (one for P&C and one for life insurers).  

At the same time, OSFI announced recently rescinded guidance with the stated intent “to reduce regulatory burden” and “allowing OSFI and industry to focus on the right guidance, the right risks, at the right time.” The list includes 20 pieces of guidance and advisories, which are largely outdated and replaced. Institutions can contact OSFI if they would like copies for their records.