Finance committee  Yes, it's roughly 80%. It's probably $1.8 trillion total and, in the institutions we regulate, about $1.5 trillion. Those are broad numbers.

Finance committee  By “shadow banking”, are we talking about unregulated lenders in the housing market, as opposed to mortgage securitization and all of that?

Finance committee  Through the data gathering of the Bank of Canada and Statistics Canada.... I would say we can capture and measure probably 80% of unregulated lenders through periodic data gathering. That tells us that part of the sector is still about 1%.

Finance committee  Many of those entities you're talking about raise money from the public and make some form of disclosure in terms of what they're doing. From what we've been able to gather so far, they are tending to be less prone to flexibility.

Finance committee  Of the 20% you talk about, 1% of it would be these unregulated lenders—mortgage investment corporations. Most of the rest are credit unions, which are regulated by provincial regulators. While provincial regulators don't perfectly and identically adopt OSFI guidelines, they're pr

Finance committee  I'm comfortable with the 19%. The 1% is worth watching, but it is still small.

Finance committee  By “zombie institutions”, do you mean non-bank companies that are affected by climate change or banks affected by climate change? It's just a point of clarification.

Finance committee  The phenomenon of what is referred to as “zombie institutions” is institutions that have financial statements that indicate they're a going concern when they are not, in fact, a going concern. In terms of managing that risk for financial institutions, assume for a minute that the

Finance committee  As superintendent, it honestly isn't in my mandate to determine what's fair. Lengthening amortizations increases risk to a mortgage, and we require a higher capital for that.

Finance committee  The risks that flow from climate change, which would be physical risks or transition risks, add costs, ultimately, to a financial institution. High risk usually means some form of higher either credit loss or investment loss, unless it's managed appropriately. The earlier and m

Finance committee  We have done some initial internal work on the risks of biodiversity, and our view is as follows. It is still a fairly underquantified risk, not just in terms of our technical focus, which is credit risk, liquidity risk and all that, but in terms of its impact on the economy. As

Finance committee  I will ask my colleague Mr. Tardif to answer this question.

Finance committee  We think our work on climate risk management flows from the purpose in our mandate.

Finance committee  We have a principles-based regulatory system. It's important to understand that B-15 is not a set of rules whereby there's a penalty—a speeding ticket, if you will—if they don't comply. There is an articulated level of interactions with boards and senior managers. When we as a re

Finance committee  In our view, transparency is a risk mitigant and not a risk accelerant. As superintendent, I don't want to presume to guide boards of directors and senior executives on what to disclose and what not to disclose, but I will say that sunlight is a very effective way to mitigate ris