How are banks regulated in Canada?
All banks in Canada are federally regulated under the Bank Act. OSFI supervises their safety and soundness, FCAC supervises compliance with consumer-protection rules, OBSI reviews complaints a bank hasn’t resolved, and CDIC insures eligible deposits at members up to $100,000 per category. Most credit unions are instead regulated and insured by their province.
The short version
| Body | What it does | What it does not do |
|---|---|---|
| OSFI — Office of the Superintendent of Financial Institutions | Prudential regulator: supervises federally regulated banks, trust and loan companies, insurers and pension plans for safety and soundness. | Resolve individual customer complaints. |
| FCAC — Financial Consumer Agency of Canada | Supervises federally regulated institutions’ compliance with consumer-protection laws and public commitments; oversees the external complaints body; financial literacy. | Resolve individual complaints or award compensation. |
| OBSI — Ombudsman for Banking Services and Investments | Free, impartial external review of complaints a bank hasn’t resolved; the single external complaints body for banks since November 1, 2024. | Make decisions binding on the bank (it issues recommendations). |
| CDIC — Canada Deposit Insurance Corporation | Insures eligible deposits at member institutions up to $100,000 per category and resolves failing members. | Insure investments such as stocks, ETFs, mutual funds or crypto-assets. |
| Provincial regulators and insurers | Regulate provincially chartered credit unions and caisses and insure their deposits. | Supervise federally regulated banks. |
OSFI: keeping banks safe
OSFI is the independent federal regulator responsible for the safety and soundness of more than 350 federally regulated financial institutions and about 1,200 pension plans. It sets capital and liquidity rules, supervises risk management and can intervene when an institution weakens. OSFI also keeps the official list of who is federally regulated — the source for our Schedule I, Schedule II and Schedule III directories.
Banks are chartered under the federal Bank Act, which is why every bank in Canada, from the largest to the newest, is federally regulated. Credit unions are different: most are chartered and supervised provincially, though a few have become federal credit unions.
FCAC: the consumer rulebook
FCAC checks that federally regulated institutions follow consumer-protection obligations in law, in voluntary codes and in public commitments. The Financial Consumer Protection Framework in the Bank Act took effect on June 30, 2022. Among other things it requires banks to:
- assess whether a product is appropriate for you and get your express consent;
- avoid misleading information and undue pressure;
- send automatic alerts when your balance or available credit falls below $100 (or an amount you choose);
- remind you before a term product renews (21 and 5 days ahead for terms of 30 days or more);
- respond to complaints within 56 days and refund fees charged without disclosure or consent;
- cash Government of Canada cheques up to $1,750 free, even for non-customers.
Two recent FCAC-supervised changes matter for everyday accounts: the modernized low-cost and no-cost account commitment (in force December 1, 2025) and new NSF fee rules in force March 12, 2026 — a maximum $10 NSF fee on personal deposit accounts, no fee when the overdraft is under $10, and no more than one NSF fee per account within two business days.
Proposed regulations published June 27, 2026 would require express consent before electronic transfer features are enabled and let customers turn features off or set limits, with a proposed in-force date of July 1, 2027. Parliament also passed changes in March 2026 to speed up access to cheque funds; FCAC still publishes the existing hold limits until regulations take effect. Both are proposals or pending until in force.
OBSI: when a complaint isn’t resolved
Start with the bank. It must give you a detailed written response within 56 calendar days. If it doesn’t, or you disagree with its final response, you can take the complaint to OBSI free of charge. OBSI says you have 180 calendar days after the firm’s final response to bring it forward. Since November 1, 2024 OBSI is the only external complaints body for banks. Step by step: how to make a bank complaint.
CDIC: protecting deposits
CDIC insures eligible deposits at its member institutions — up to $100,000 per insured category, per member. There are nine categories, coverage is automatic, and foreign-currency deposits have been eligible since April 30, 2020. Details: CDIC deposit insurance explained. Not every bank is a member: foreign bank branches and a handful of banks that don’t take retail deposits are absent from CDIC’s list.
Credit unions and the provinces
Provincially regulated credit unions answer to their province’s regulator, and their deposits are protected by a provincial insurer or guarantee corporation — with limits ranging from $100,000 per category in Quebec to unlimited in British Columbia, Alberta, Saskatchewan and Manitoba. See deposit insurance by province. ATB Financial is a special case: an Alberta Crown financial institution whose deposits are guaranteed by the provincial government.
Open banking oversight moved to the Bank of Canada
FCAC was first named to lead consumer-driven (open) banking, but Budget 2025 gave the job to the Bank of Canada; the mandate transferred on April 1, 2026. The current status and timeline are in open banking in Canada.
Quick test for any institution: is it on OSFI’s list (federally regulated) or a provincial one, and who protects the deposits — CDIC, a provincial insurer, or nobody? The directory answers both for every bank in Canada.
What this means for you
You rarely need to deal with a regulator directly, but knowing who does what tells you where to go when something goes wrong and which protections you can insist on.
| Your situation | Where to go |
|---|---|
| A fee, error or service problem at a bank | The bank first. OBSI if there is no answer after 56 days, or you disagree with the final response. |
| You think a bank broke a consumer-protection rule | FCAC. It supervises compliance but won’t resolve your case or award compensation. |
| You want to know whether deposits are insured | The CDIC member list, or your province’s insurer for a provincial credit union. |
| A problem with a provincially chartered credit union | The credit union and your province’s regulator. |
| Stocks, ETFs, mutual funds or crypto-assets | Not CDIC-insured, wherever you bought them. |
Worked example. An illustration with round numbers. Your personal chequing account at a bank goes $25 below zero, two payments bounce on the same day, and you are charged a $10 NSF fee for each. Here is how the rules in this guide apply:
- Check the fee against the rules
Since March 12, 2026, a bank may charge at most $10 per NSF fee on a personal deposit account, and no more than one per account within two business days. Two fees on the same day means one shouldn’t have been charged. Had the shortfall been under $10, no fee would apply at all. - Ask the bank first
Use its complaint process and write down the date. It must give you a detailed written response within 56 days. - Go to OBSI if needed
If 56 days pass, or you disagree with the final response, OBSI reviews it free of charge. OBSI says you have 180 calendar days after the final response. - Tell FCAC about the rule
FCAC won’t get your money back, but it supervises whether banks follow rules like the NSF limits.
Prevention is cheaper: banks must alert you automatically when your balance or available credit falls below $100, or an amount you choose. Changes still pending — such as express consent before electronic transfer features are switched on, proposed for July 1, 2027 — don’t protect you until they are in force.
Before you trust an institution with savings, run the quick test: is it on OSFI’s list or a provincial one, and is it protected by CDIC, a provincial insurer, or nobody? The directory answers both.
Frequently asked questions
Who regulates banks in Canada?
All banks are federally regulated. OSFI supervises their safety and soundness, FCAC supervises consumer-protection compliance, and CDIC insures deposits at member institutions. OBSI handles unresolved complaints.
Does FCAC resolve complaints?
No. FCAC supervises whether banks follow consumer laws and oversees the external complaints body, but it does not resolve individual complaints or award compensation. Complaints go to the bank first, then to OBSI.
Are credit unions regulated by OSFI?
Most are not — provincially chartered credit unions are regulated by their province. Federal credit unions such as Coast Capital, Innovation, UNI and Tru Cooperative Bank are regulated under the Bank Act and are CDIC members.
What is the Financial Consumer Protection Framework?
A set of Bank Act consumer rules in force since June 30, 2022, covering product suitability, consent, alerts, renewal reminders, complaint handling within 56 days and fee refunds, among other protections.
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