Geopolitical tensions, economic uncertainty, and rapid advances in artificial intelligence have intensified risks to Canada’s financial system, exposing banks and other financial institutions to increasingly sophisticated cyberattacks, the country’s financial regulator says.
The Office of the Superintendent of Financial Institutions (OSFI) released its 2026 semi-annual risk outlook on Oct. 8, warning that risks to financial institutions have increased since its last assessment in April, adding the sector remains profitable and resilient.
The regulator said economic conditions in Canada have weakened and technological developments have introduced new threats.
“Global uncertainty has remained elevated and geopolitical tensions have intensified,” OSFI said in the report, adding that war between the United States and Iran has raised concern about disruptions to energy supply chains and economic shocks….