CDIC 2021 Annual Report released
OTTAWA –December 10, 2021 – The Canada Deposit Insurance Corporation’s (CDIC) 2021 Annual Report was tabled today in Parliament.
“When the COVID-19 pandemic struck early in 2020, CDIC took rapid action to reassure Canadians about the safety of their hard-earned savings, and to enhance our readiness for resolving crises in a climate of financial uncertainty” said Leah Anderson who joined CDIC as President and CEO in August 2021. “CDIC, through its readiness activities, is well-prepared to protect depositors under any circumstance that might arise.”
This was particularly important as the Report indicates deposits insured by CDIC increased by 14% over the previous year. The growth in insured deposits reflects changes to deposit insurance which extended coverage to include eligible deposits held in foreign currency and eligible deposits with terms greater than five years. It also reflects the impact of the COVID-19 pandemic that saw an increased level of savings by Canadians.
CDIC’s 2021 Annual Report highlights progress made against key strategic priorities, including:
- Refining CDIC’s capability to respond quickly and effectively to member institution failures
CDIC enhanced its resolution readiness through a well-defined risk tolerance framework that ensures CDIC’s activities are commensurate with each member’s risk profile. CDIC also continued to strengthen its capacity to manage multiple member failures through crisis modelling and simulation exercises. CDIC conducted nine simulation exercises, more than twice the target number for 2020/2021, and included varying levels of participation amongst CDIC employees, Board members and financial safety net partners. Resolution planning activities were advanced as CDIC provided guidance and feedback to members on their own resolution plans to ensure they are sufficiently prepared should they run into difficulty. And, with additional changes to deposit insurance slated for April 2022, CDIC worked extensively with key stakeholder groups to ensure a smooth transition towards the new coverage framework.
- Modernizing CDIC’s payout systems and enhancing information security practices
Since launching the payout modernization program in 2020, CDIC has invested significant resources to modernize CDIC’s payout capabilities and related processes to protect depositors and facilitate access to insured deposits on the day of a potential failure. Key achievements include strategic design details being defined, the selection of a technology partner and the establishment of a Project Management Office to oversee the delivery of key milestones.
- Transforming CDIC’s Enterprise Risk Management Program
CDIC continued to refine its Enterprise Risk Management (ERM) Framework and integrate risk management into priority setting and decision making. This ensures that all risks are appropriately identified, assessed, managed and reported on, and supported by a corporate planning process which clearly aligns key risks and strategic initiatives.
- Implementing the Organization and Culture Strategy and Plan
CDIC completed year two of its multi-year Organization and Culture Strategy and Plan including modernizing tools to support a virtual work environment. In response to COVID-19, mental health and employee well-being took centre stage to ensure staff were supported and provided with flexibility to manage the blending of work and home life. These activities, in turn, allowed CDIC staff to better serve Canadians.
- Increasing public awareness of CDIC deposit protection
To bolster Canadians’ confidence and trust in the safety and security of their deposits during the COVID-19 crisis, CDIC increased its public awareness activities on TV, digital and social media. Quarterly surveys showed that public confidence rebounded since the beginning of the pandemic. Awareness of CDIC’s role in protecting deposits reached 61% as of March 2021, which was within the key deliverable target range of 60%–65% this fiscal year.
The CDIC 2021 Annual Report also outlines CDIC’s financial performance over the past year.
CDIC is a federal Crown corporation established in 1967 to protect the savings of Canadians, and we contribute to financial stability by safeguarding over $1 trillion in deposits at more than 80 member institutions. As resolution authority, we are responsible for handling the failure of any of our members, from the smallest to the largest. Our members include banks, federally regulated credit unions as well as loan and trust companies. We are funded by premiums paid by member institutions and do not receive public funds to operate. We have resolved 43 member failures affecting some two million Canadians. No one has lost a dollar of deposits under CDIC protection.
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