Senate Committee hears CDIC is well-positioned to protect depositors and financial stability
OTTAWA – October 25, 2018 – In a Parliamentary appearance today, the Canada Deposit Insurance Corporation (CDIC) said it has made important progress to protect depositors and promote financial stability in the 10 years since the global financial crisis.
“In the 10 years since the crisis, much has been done to better position us,” said CDIC President and CEO Dean Cosman. “However, we cannot lose our focus as the financial sector landscape and Canadians’ habits and expectations are in constant evolution.”
In his opening statement (PDF, 143 MB), Mr. Cosman told the Senate Committee on Banking, Trade and Commerce that the next financial crisis may look very different from the last one so CDIC must continue its efforts to strengthen its resolution framework and preparedness to ensure it can adapt and be ready for new risks and challenges.
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 dealt with 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