New research sheds light on contingency planning preparedness
OTTAWA – July 9, 2021 – CDIC recently spearheaded a research project on contingency plan testing, revealing common challenges faced by regulatory authorities and the measures they’ve taken to bolster resilience.
Conducted on behalf of the North American arm of the International Association of Deposit Insurers (IADI) the research analyses the contingency plan testing programs of deposit insurers and resolution authorities in Canada, the United States and Mexico. The research paper explores the development of contingency plan testing programs and identifies best practices and lessons learned from CDIC and the other contributors to the research project including: the Autorité des marchés financiers (AMF), the Federal Deposit Insurance Corporation (FDIC), and the Instituto para la Protección al Ahorro Bancario (IPAB).
Over the past decade, contingency plan testing has become increasingly important to advancing resolution preparedness around the world and CDIC is proud to be part of an initiative that benefits the global community of resolution authorities.
Contingency planning is an important element of CDIC’s broader preparedness efforts to protect deposits while ensuring quick action to resolve a failing member institution. Other areas of focus include crisis simulations, risk monitoring and assessment as well as continuous improvement of internal systems and processes.
Contingency Plan Testing in North America (PDF, 539 KB) lays the foundation for future work in this area as IADI members continuously strive to find innovative solutions to the challenges they face in conducting testing activities.
CDIC is a federal Crown corporation established in 1967 to protect the savings of Canadians, and we contribute to financial stability by safeguarding close to $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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Director, Communications and Public Affairs