OTTAWA - March 24, 2017 - The Canada Deposit Insurance Corporation (CDIC) welcomes measures in Budget 2017, Building a Strong Middle Class that promote financial stability by strengthening Canada’s deposit protection and bank resolution regime.
Enhancing the Bank Resolution Regime
In the 2017 budget, the Government proposes to introduce measures to:
- Formally designate CDIC as the resolution authority for its members and formally require Canada’s biggest banks to develop and submit resolution plans; and
- Clarify the treatment of, and protections for, eligible financial contracts-such as derivatives-in a bank resolution process.
“CDIC fully supports these initiatives by the Government,” said CDIC President and CEO Michèle Bourque. “These initiatives will enhance Canada’s resolution framework for deposit-taking institutions.”
Deposit Insurance Review
The budget also states the Government’s intent to introduce legislative amendments to modernize and enhance the Canadian deposit insurance framework to better meet its objectives, including supporting financial stability.
“CDIC has protected the savings of Canadians for 50 years, and these measures will ensure that deposit protection keeps pace with the way Canadians bank and save today,” said Ms. Bourque. “CDIC is working closely with the Department of Finance on this policy initiative.”
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 over $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.
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Director, Communications and Public Affairs