OTTAWA - February 12, 2018 - The Canada Deposit Insurance Corporation (CDIC) today launched a consultation for public comment on proposed requirements to strengthen the planning process for resolving Canada’s largest banks in the event of financial distress. The Resolution Planning By-law will specify what these banks must include in their resolution plans, and how the plans could be implemented. The proposed By-law requirements formalize CDIC’s existing resolution planning guidance and practices as Canada’s resolution authority for these large banks, and are consistent with international standards.
“Strengthening the resilience of the Canadian financial system is the main objective of resolution planning,” said CDIC President and CEO Michèle Bourque. “This By-law supports CDIC’s efforts in achieving this objective.”
A copy of the consultation paper (PDF, 804 KB) is available. Comments are requested from interested parties by March 13, 2018.
CDIC is a federal Crown corporation established in 1967 to protect the savings of Canadians, and we contribute to financial stability by safeguarding over $770 billion in deposits. As resolution authority, we are responsible for handling the failure of any of our members, from the smallest to the largest. Our members 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. We are funded by premiums paid by member institutions and do not receive public funds to operate.
– 30 –
Director, Communications and Public Affairs