OTTAWA – December 3, 2015 – Canada Deposit Insurance Corporation (CDIC) has signed a Memorandum of Understanding (MoU) with the UK’s Prudential Regulation Authority (PRA) that formalizes and strengthens cross-border cooperation in the event of the failure of a large, complex financial institution operating in both countries.
The MoU builds on the existing relationship between CDIC and the PRA by enhancing and strengthening their consultation and cooperation and exchange of information. It 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 MoU follows similar arrangements CDIC has established with the U.S. Federal Deposit Insurance Corporation (FDIC), Mexico��s Instituto para la Protección al Ahorro Bancario (IPAB), the Deposit Insurance Corporation of Japan (DICJ) and Taiwan’s Central Deposit Insurance Corporation. CDIC will continue to work with international counterparts to strengthen relationships and improve cross-border cooperation and coordination.
Canada Deposit Insurance Corporation (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. Eligible deposits are automatically covered to a limit of $100,000 per insured category at each member institution. CDIC members include banks, federally regulated credit unions, as well as trust and loan 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