Press Release

Canada Deposit Insurance Corporation Releases its Annual Report 2010

OTTAWA- October 5, 2010 – The Canada Deposit Insurance Corporation (CDIC) announced that its Annual Report 2010 was tabled in Parliament yesterday, and is now available to the public.

“CDIC members’ financial performance improved in a tough economic environment,” reported new CDIC President and CEO, Michèle Bourque, adding that “while the financial turmoil of the past two years has had an effect on CDIC’s member institutions, they have nevertheless performed solidly throughout this period. Canadians enjoy a strong and stable financial system in which they can place their confidence.”

The report highlights that with the passage of the Budget Implementation Act, 2009, CDIC has received new powers, in particular the ability to create a bridge institution. With the addition of this new power, CDIC now meets all of the international Core Principles for Effective Deposit Insurance Systems.

The report further details the corporation’s improved readiness and sustained public awareness. It also highlights the findings of the Office of the Auditor General of Canada’s Special Examination which concluded that CDIC has the key elements of a good governance framework, a clearly defined strategic direction and the right systems and practices to discharge its mandate. It also describes CDIC’s role within Canada’s federal financial safety net.

CDIC is a federal Crown corporation that provides deposit insurance against the loss of deposits with its member institutions in the event of their failure. Eligible deposits are automatically insured from $1 to $100,000 per person at each member institution. CDIC members include Canadian banks, loan companies and trust companies that take deposits, as well as retail associations governed by the Cooperative Credit Associations Act that take deposits. CDIC is entirely funded by premiums assessed on its member institutions and does not receive federal tax dollars. As at April 30, 2010, CDIC insured $602 billion in deposits at its member institutions.

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