In Canada, however, the Office of the Superintendent of Financial Institutions (OSFI) identified six of our banks as systemically important at the domestic level, mandated that they hold 1 per cent more capital and strengthened its oversight of them.
Third, and perhaps most significant, the FSB has developed a set of policy standards, known as the Key Attributes for Effective Resolution Regimes, to resolve these global banks when they become non-viable. 8 The objective of resolution is to maintain their critical functions, such as deposit taking, payments and lending, without disrupting the financial system and without taxpayers being the first line of defense.