As the global financial landscape shifts and financial institutions become larger and much more complex—forming conglomerates that span continents and give rise to cross-border implications, there has never been a more critical time for regulators and resolution authorities like CDIC to stay ahead of the curve. We must understand the changes that are occurring and how these affect our member institutions and their depositors.
We do this by participating actively in the development of international guidance and standards for deposit insurance systems and for resolving failed financial institutions.
We are a founding member of the International Association of Deposit insurers (IADI) and participated in the development of IADI’s Core Principles for Effective Deposit Insurance Systems in 2009 and its revised principles in 2014, to strengthen the effectiveness of all deposit insurance systems. We also act a lead advisor with the Financial Stability Board (FSB), and the Bank for International Settlements (BIS). Through our representation on IADI, we sit on the FSB Resolution Steering Group. We are also a member of the FSB Cross-border Crisis Management Group.
One of the major changes stemming from the global financial crisis came in 2011 when the FSB issued standards – called ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’ – which reflect the features resolution regimes should contain to successfully address the potential failure of large, complex financial institutions.
Through these and other partnerships, CDIC learns about developments in other deposit insurance systems and emerging issues that can affect our member institutions and our financial system as a whole, including working with other regulators and resolution authorities to prepare for resolving cross-border bank failures; new and faster depositor payout processes; variances in international law and insolvency regimes; new deposit and investments products; and developments in e-money, e-commerce and international clearing and settlements.
Over the years, we have built a strong reputation and we receive many requests for participation in international conferences, seminars and workshops and requests for assistance by countries establishing or updating deposit insurance systems. CDIC’s assistance aligns with its vision and with the federal government’s policy of promoting international financial system stability and cooperation in financial institution regulation.