The Resolution Division (RD) works to keep the Corporation ready to resolve member institutions in the event of their failure. RD's objectives are to:
CDIC preparedness for member resolution. This includes coordinating communication, funding and resource capacity, developing operational plans and conducting simulations to ensure that
CDIC is operationally ready to resolve any of its member institutions.
- Ensure timely access to insured deposits. This includes undertaking preparatory activity on troubled member institutions and the prompt access to deposits in the event of the closure of a failed member institution.
- Guide, interact and direct domestic systemically important banks (D-SIBs) in preparing and developing credible resolution plans. Resolution plans are developed for use in the unlikely event that a large, complex
CDIC member institution's recovery measures are not feasible or prove ineffective. These plans set out a strategy and operational plan that could be implemented should a bank fail. RD is responsible for reviewing the plans to ensure that they are realistic and practical and for identifying actions that are required to ensure that a large bank could be resolved in a timely manner. The plans are reviewed in collaboration with Canada's other
financial safety net agencies and are aligned with the
Financial Stability Board's "key attributes" of effective resolution regimes for financial institutions.
- Engage with key domestic and international stakeholders to encourage information sharing and put in place the coordinating protocols required to facilitate the resolution of member institutions.