Intervention Process

CDIC and the Office of the Superintendent of Financial Institutions (OSFI) have jointly developed the Guide to Intervention for Federal Financial Institutions. It provides a framework for responding effectively to circumstances that could lead to the instability of a member institution. Having in place a formalized process for early intervention to respond to potential problems increases the likelihood of averting a member institution's failure.

The Guide outlines the actions and options available to OSFI and CDIC, individually and jointly, to address concerns with a member. It defines a graduated and progressive set of responses, depending on the member institution's particular situation and perceived weaknesses.

The Guide explicitly describes and makes transparent the supervisory assessment and intervention process. This makes the system easier to understand and provides positive incentives for all parties to reduce the risk of losses arising from a member institution's failure.