OTTAWA – May 29, 2019 – The Canada Deposit Insurance Corporation today welcomed the coming into force of its Resolution Planning By-law.
Following the global financial crisis, CDIC was designated the resolution authority for Canada’s domestic systemically important banks (D-SIBs), a mandate change made official when our Act was amended in 2017.
A key element of this role is the development of resolution plans by D-SIBs. Resolution plans set out a strategic and operational plan that could be implemented if a D-SIB became non-viable. The overall objective of our D-SIB resolution-planning process is to ensure that these large, complex institutions are resolvable in a manner that protects depositors, maintains the flow of essential financial services to Canadians, protects Canada’s economy, and minimizes risk to taxpayers.
“As Canada’s resolution authority for its member institutions, CDIC will continue to work with our D-SIB members to ensure their resolution plans demonstrate that they can be resolved safely in the event of their non-viability,” says Peter Routledge, CDIC President and Chief Executive Officer. “In so doing, we will reinforce Canadians’ confidence in the stability of our financial system,”
The Resolution Planning By-law formalizes the framework for the development, submission and maintenance of D-SIB resolution plans. The framework also sets out a process for highlighting and addressing deficiencies in those plans.
CDIC is a federal Crown corporation established in 1967 to protect the savings of Canadians, and we contribute to financial stability by safeguarding over $792 billion 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 and associations governed by the Cooperative Credit Associations Act that take deposits. 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.
– 30 –
Director, Communications and Public Affairs