CDIC on the World Stage
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International engagement in the field of deposit insurance and resolution is an important component of CDIC’s activities. CDIC participates in several international fora that are focused on the importance of the role that effective deposit insurance and resolution systems play in maintaining financial stability.
As a founding member of the International Association of Deposit Insurers (IADI), CDIC remains committed to promoting best practices and international cooperation in the field of deposit insurance. Since October 2018, CDIC serves on the Executive Council of IADI and is the vice-chair of the IADI Audit and Risk Council Committee. CDIC continues to chair the IADI Regional Committee of North America and sits on several IADI technical committees where we contribute to research and policy discussions. CDIC is also an active participant in the work of the Financial Stability Board (FSB) developing effective resolution regimes for large, complex financial institutions. CDIC serves on the FSB Cross-border Crisis Management Committee and participates as a member on several FSB working groups focused on resolution and resolvability.
Active international engagement ensures that CDIC remains compliant with international best practices and is influencing the future development of international standards on deposit insurance and resolution. Developing and drawing on international networks and the experience of other deposit insurers and resolution authorities helps CDIC improve its proactive readiness and contingency planning. With increasingly integrated financial systems, cross-border cooperation between financial regulators has risen in importance. CDIC’s international work also consists of bolstering our outreach program and entering into numerous Memoranda of Understanding and similar information sharing and cooperation arrangements with other foreign jurisdictions. These arrangements facilitate the coordination of an effective resolution for a distressed member institution. Staying abreast of current issues and financial innovations is essential to preparing the Corporation for the next financial crisis, and to that end, CDIC staff attend international policy and research conferences and training workshops.
There is a significant demand for CDIC’s technical assistance as the Corporation has earned international recognition as an expert in deposit insurance and resolution planning for systemic banks. CDIC’s assistance has taken many forms ranging from briefing sessions, to presentations at international conferences, to hosting short-term delegations. CDIC also participates in technical assessments of the jurisdictions against IADI Core Principles and is leading an FSB Peer Review for a jurisdiction that is currently in the process of implementing a deposit insurance and resolution regime. These capacity building programs allow CDIC staff to further enhance their knowledge and develop a deeper understanding of current issues in deposit insurance and resolution and contribute to financial sector development both in Canada and abroad. Knowledge enhancing opportunities offered by international activities inform CDIC’s work and help achieve the objects of the Corporation.