Annual Public Meeting puts focus on CDIC’s audacious goal

TORONTO – May 15, 2019 – The Canada Deposit Insurance Corporation (CDIC) is taking steps to modernize its reimbursement program and systems in the event of a member institution failure with the ultimate goal of providing Canadians with access to their protected savings on the day the failure of a member institution is announced. CDIC President and CEO Peter Routledge, discussed this plan during a panel discussion at the corporation’s annual public meeting.

CDIC’s new CEO speaks about BUILDING FINANCIAL RESILIENCE IN CANADA

My memories of the global financial crisis are still so vivid, I think it incredible to note that we’re more than 10 years beyond its arrival. I was at Moody’s Canada during that time and have since held senior roles with the National Bank of Canada and the Department of Finance, so I suppose you could say I’ve seen the industry, and the aftermath of the crisis, from all sides. Perhaps it’s no surprise then, that in my new role as CEO of Canada Deposit Insurance Corporation, I am obliged to think instead that we are 10 years closer to the next one. So, I ask myself, will we be ready?

Changes to Canada Deposit Insurance Framework

The Government of Canada has amended the Canada Deposit Insurance Corporation (CDIC) Act to modernize and enhance Canada’s deposit insurance framework. The changes will come into force in two phases – April 30, 2020 and April 30, 2021 – to allow CDIC, its member institutions, and other stakeholders to make procedural or operational adjustments.

Canada Deposit Insurance Corporation Resolution Planning By‑law

CDIC, as the Resolution Authority for its member institutions, has been working with Canada’s domestic systemically important banks (DSIBs) over the past few years on developing resolution plans which describe how DSIBs, in the unlikely event of failure, could be resolved in an orderly manner, while ensuring the continuity of critical financial services.