The head of Canada’s banking regulator says he is planning for more frequent volatility storms in the financial sector.
Peter Routledge said in his first speech since he took on the role of Superintendent of Financial Institutions in June that climate change and digitization are the two biggest risks facing the sector.
Speaking virtually at the Global Risk Institute Annual Summit, he said the risk environment demands a transformation of the regulator’s approach and organization to meet the challenges ahead.
On climate change, Routledge says the regulator is working to better understand the risks and to increase disclosures because current data falls short.
He says that the digital era creates space for innovation, but that Canadians expect regulators to balance innovation and stability.
To meet the challenges ahead, Routledge said he will focus the regulator’s transformation on culture, including more emphasis on psychological safety and diversity, and on improved data and an updated supervisory framework.
The Canadian Press