A source at OSFI is now confirming the regulatory chief who ushered in the tightest lending guidelines in recent history will step down after her one and only term ends.
Media relations head at OSFI Annik Faucher told MortgageBrokerNews.ca Tuesday of Julie Dickson’s decision to step down.
The confirmation come on the heels of a report by Business News Network, later cited in the Financial Post, that Dickson “will not be seeking another term” as the head of the Office of the Superintendent of Financial Institutions Canada – a move that is typical of past superintendents.
The revelation of Dickson’s departure was included in a Financial Post story on the risks associated with sustained low banking rates, with Dickson stating she is “closely monitoring” the current period of low interest rates and its potential threat for Canada’s lenders. It was part of a speech delivered at the recent Bloomberg Canada Economic Summit, stressing the need for strong “regulation and supervision” of banking to maintain a strong line of defence against the consequences of sustained low interest rates, “which could include falling margins and increased reliance on higher-yielding assets.”
Dickson and OSFI are currently conducting reviews of mortgage lending portfolios, including the models lenders are using to calculate capital charges for uninsured mortgages.
During Dickson’s watch as head of OSFI, several new regulations and restrictions were placed on the mortgage market, including tighter restrictions on LTVs, amortization periods and first-time homebuyers.
Dickson was appointed superintendent in July 2007 of financial institutions for a seven-year term. After joining OSFI in April of 1999, she served as assistant superintendent, regulation sector, from January 2000 to June 2006, when she was appointed deputy superintendent. In October 2006 Dickson was appointed acting superintendent.
Prior to joining OSFI, Dickson served for 15 years in the department of finance, primarily in areas related to financial institution policy. In the private sector she served as group leader of financial institutions practice for a national consulting firm from 1995 to 1998.