OTTAWA - March 17, 2017 - The Canada Deposit Insurance Corporation (CDIC) has entered into an information sharing arrangement with the United States’ Office of the Comptroller of the Currency (OCC) that formalizes and strengthens cross-border cooperation in the event of the failure of a large, complex financial institution with operations in both countries.
The arrangement between CDIC and the OCC is intended to be used for crisis management and contingency planning, both during normal business times and periods of financial stress.
Cooperation between countries to resolve banks with cross-border activities has been identified by the Financial Stability Board as one of the essential features of effective resolution regimes for large financial institutions.
This arrangement follows similar agreements CDIC has established with other leading deposit insurers and financial regulators to improve cooperation, information sharing, and resolution planning. CDIC will continue to work with domestic and international counterparts to strengthen relationships and improve cross-border cooperation and coordination.
The OCC charters, regulates, and supervises all national banks and federal savings associations in the United States as well as federal branches and agencies of foreign banks operating in the United States. The OCC is an independent bureau of the U.S. Department of the Treasury.
CDIC is a federal Crown corporation that contributes to the stability of the Canadian financial system by providing deposit insurance against the loss of eligible deposits at member institutions in the event of failure. CDIC protects approximately $700 billion of savings held by its member institutions which include banks, federally regulated credit unions as well as loan and trust companies and associations governed by the Cooperative Credit Associations Act that take deposits. CDIC is funded by premiums paid by member institutions and does not receive public funds to operate.
– 30 –
Director, Communications and Public Affairs