OSFI releases survey on public confidence in Canadian financial institutions
OTTAWA — June 22, 2005 — The Office of the Superintendent of Financial Institutions (OSFI) has released the results of a recent survey conducted to gauge public confidence in Canadian financial institutions and pension plans.
The findings indicate Canadians are very confident that their financial institutions are stable, and that there is little concern that institutions might be getting into financial difficulty. Nearly nine out of every ten respondents (89 per cent) indicate they believe money they�ve deposited with banks is safe. In insurance, 81 per cent of respondents say that insurance companies have adequate financial resources available to pay claims. In response to questions regarding pension plans, 75 per cent of respondents expressed confidence that their pension fund will be able to pay their benefits in retirement.
“OSFI is pleased with the continued high level of public confidence in the Canadian financial system, which is essential for ensuring a strong, stable industry sector,� says Nicholas Le Pan, Superintendent of Financial Institutions. �While there are many factors that contribute to confidence in our institutions, effective regulation and supervision by OSFI is an important one.”
Some other key findings:
89 per cent expressed confidence that Canadian banks are financially healthy and stable, up from 78 per cent in the 2004 survey.
78 per cent expressed confidence in the financial health of the life insurance industry and 77 per cent in the health of the property and casualty industry. This is an increase from 65 per cent and 66 per cent respectively in the previous survey.
82 per cent of members of defined benefit plans, and 71 per cent of members of defined contribution plans are confident that their pension fund will be able to pay their benefits in retirement.
In addition, a majority of Canadians are confident government regulation and oversight works to promote the financial health and stability of institutions.
As the primary regulator of federally registered financial institutions and private pension plans, OSFI has an ongoing interest in the level of public confidence in the financial services and pension plan sectors. Since 1997, OSFI has commissioned surveys to determine the level of public confidence in the Canadian financial system.
Decima Research Inc. conducted this survey on behalf of OSFI. The survey results were collected by telephone during a random sample of about 1000 Canadians, aged 18 and over, from across the country between March and April 2005. With a sample of this size, the results are considered accurate within +/- 3.1 percentage points, 19 times out of 20.
A detailed report of the findings can be accessed here: http://www.osfi-bsif.gc.ca/osfi/index_e.aspx?ArticleID=839
Created in 1987 by an Act of Parliament, the Office of the Superintendent of Financial Institutions (OSFI) is the primary regulator and supervisor of federally registered deposit-taking institutions, insurance companies, and federally registered private pension plans. OSFI’s mandate is to advance and administer a regulatory framework that contributes to public confidence in a strong, stable and competitive financial system.
For more information about OSFI, visit www.osfi-bsif.gc.ca