News releases

CDIC seeks input on its funding framework

News releases

OTTAWA – July 25, 2022 – The Canada Deposit Insurance Corporation (CDIC) today announced revisions to its deposit protection fund (ex ante fund) target level and launched a public consultation seeking input on proposed changes to its Differential Premiums System (DPS). 

“Canadians can be confident that CDIC will protect their insured deposits,” said CDIC President and Chief Executive Officer Leah Anderson. “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.  The proposals announced today reinforce a safe and sound financial system.”

The purpose of CDIC’s ex ante fund is to provide funding support for the resolution of a CDIC member institution. 

CDIC is establishing a near-term target level for its fund to exceed 85 basis points (bps) of insured deposits by 2026-27.  This target will guide CDIC’s annual premium rate setting for member institutions.  CDIC will review the fund target level on a regular basis, at a minimum every five years.

The DPS is a risk-based ratings system used to set premiums paid by member institutions into CDIC’s ex ante fund.  CDIC is launching a 90-day public consultation on proposals to modernize and improve the effectiveness of the DPS.

Proposals 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 the risks members may pose to CDIC’s ex ante fund if they were to fail. Comments on these 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)

Quick facts

  • CDIC sets and collects premiums annually from all its (85) member institutions based on the risk they pose to the deposit protection fund and bases its funding target, among other inputs, on the volume of insured deposits, currently about $1 trillion.
  • As at March 31st 2022, the ex ante fund represents $7 billion or 71 bps of insured deposits.
  • CDIC’s funding framework ensures the corporation can quickly reimburse depositors and support effective strategies for resolving a member failure.
  • Proposed changes to the Differential Premiums System (DPS) make it more effective in meeting its core objective to send an early warning signal – with financial consequences – to the management and board of directors of a member institution concerning the risk it poses to CDIC as deposit insurer and resolution authority.
  • Additional information about the DPS consultation and CDIC’s funding framework including the deposit insurance ex ante fund is available on CDIC’s website.

About CDIC

CDIC is a federal Crown corporation established in 1967 to protect the savings of Canadians. As resolution authority, CDIC is 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. CDIC is funded by premiums paid by member institutions. CDIC has resolved 43 member failures affecting some two million Canadians. No one has lost a dollar of deposits under CDIC protection.

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For further information

Brad Evenson
Director, Communications and Public Affairs
Tel: 613-943-4395

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