Financial Community and Trustees

CDIC’s Funding Framework

The DPS consultation period has ended. Thank you for your input. Please check back for updates on next steps. CDIC members will be notified when new information is available.

Canadians can be confident that the Canada Deposit Insurance Corporation (CDIC) will protect their insured deposits held by CDIC member institutions. This protection includes CDIC having in place a strong funding framework to support the timely resolution of a member institution in the rare event it should fail.

CDIC’s funding framework includes a deposit protection fund (ex ante fund), and deposit insurance premiums paid by member institutions according to CDIC’s Differential Premiums System.

CDIC’s mandate in respect of resolution, and the member institution risk and operating environment, have changed significantly since the current funding framework was last reviewed.

Strategic Review Findings and Consultation

CDIC has undertaken a strategic review of its ex ante fund and deposit insurance premium system and is announcing:   

  • CDIC will establish a near-term ex ante fund target to exceed 85 basis points (bps) of insured deposits by fiscal year 2026/2027; 
  • The near-term target will guide CDIC’s annual premium rate setting and related communication to member institutions on forward premium levels; and
  • CDIC will review the prudence of the near-term target in the context of prevailing risk factors at the earliest of either: 
    • when the 85 bps target is exceeded; or
    • within five years.  

For more information, we invite you to consult Overview: Review of CDIC Ex Ante Fund and Deposit Insurance Premium Framework.

In addition, CDIC has launched a 90-day public consultation to seek input on proposed changes to modernize and improve the effectiveness of the Differential Premium System (DPS). The DPS is a risk-based ratings system used to set premiums paid by member institutions into CDIC’s deposit protection fund.

Proposed changes include:  

  • Raising the number of premium rate categories to five from four;
  • Increasing the frequency of differential premium assessments; and
  • Enhancing metrics related to financial and regulatory criteria used by CDIC to complete assessments, including a greater emphasis on resolvability.

We invite you to review CDIC’s DPS consultation paper and welcome your input. Comments on the proposed changes are requested from interested parties by October 21, 2022

Overview: Review of CDIC Ex Ante Fund and Deposit Insurance Premium Framework

PDF (279 KB)

DPS Consultation Paper

PDF (557 KB)

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