The Canada Deposit Insurance Corporation (CDIC) is seeking new board members who bring practical experience and skills from the business world to complement the financial, supervisory and regulatory environment in which we operate.
Our Board works together to guide CDIC in its vision to earn the trust of Canadians as a global leader in deposit insurance and resolution. If you are interested in becoming a member of CDIC’s Board of Directors, please apply today.
OTTAWA – October 7, 2022 – The Canada Deposit Insurance Corporation’s (CDIC) 2022 Annual Report has been tabled in Parliament.
“Over the past year, risks in the environment and to CDIC’s membership have evolved significantly,” said President and CEO Leah Anderson. “These include tightening monetary policy, rising geopolitical tensions, climate and cyber risks. And while innovation offers Canadians greater choice, the financial landscape is complex and evolving. CDIC remains steadfast in its mandate to protect depositors.”
CDIC’s 2022 Annual Report highlights progress made against key strategic priorities, including:
- Innovating to meet evolving depositor expectations
CDIC prepared for the launch of insurance coverage for deposits in Registered Education Savings Plans and Registered Disability Savings Plans, which took effect as of April 30, 2022, and continued to strengthen deposit protection for trust deposits and nominee brokered deposits.
Through CDIC’s Public Awareness program, awareness of deposit protection reached planned targets. Awareness of deposit protection plays a key role in building Canadians’ financial resiliency which also contributes to overall financial stability.
CDIC also developed recommendations to modernize its differential premiums framework and conducted an extensive review of the ex ante funding framework. This work laid the foundation for a public consultation process launched in July 2022.
- Advancing CDIC’s readiness to respond effectively to a crisis
CDIC continued to strengthen and test its overall resolution preparedness, ensuring it can rapidly deploy its resolution tools, through the coordination of several comprehensive testing exercises and multi-party simulations.
CDIC is transforming its technological infrastructure though a multi-year Payout Modernization program, designed to deliver faster digital reimbursements to depositors in the event of a member failure. - Enhancing organizational resiliency by transforming CDIC’s culture and workplace
CDIC delivered a new multi-year Organization and Culture Strategy and Plan, including preparing for the future of work requiring new approaches to how work gets done and where. In tandem, CDIC delivered its first Diversity, Equity and Inclusion Strategy and corresponding programing, including the launch of an Inclusion Advisory Panel, reinforcement of mental health tools and improvements to workplace policies.
As part of the multi-year Enterprise Technology Strategy, CDIC focused on enterprise data to enhance security, governance and data-driven insights, while also renewing its Cybersecurity Strategy to support processing of depositor data, the future of work and CDIC’s digital transformation.
CDIC’s successful performance to plan has bolstered readiness and reinforced the trust of Canadians in CDIC deposit protection.
The CDIC 2022 Annual Report also outlines CDIC’s financial performance over the past year.
About CDIC
CDIC is a federal Crown corporation established in 1967 to protect the savings of Canadians and contribute to financial stability. We currently safeguard more than $1 trillion in eligible deposits at more than 80 member institutions. 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
E-mail: media@cdic.ca
Facing the Future: how preparedness is key to protecting depositors
The Board of Directors of the Canada Deposit Insurance Corporation (CDIC) is pleased to announce that its 2022 Annual Public Meeting will be held via live bilingual webcast on November 3, 2022, from 2 p.m. – 2:30 p.m. ET.
Leah Anderson, President & CEO, will be joined by Chair of the Board, Robert Sanderson to discuss strategic highlights in building and maintaining CDIC’s state of readiness, and reinforcing the importance of and trust in deposit insurance in a complex and uncertain environment.
Members of the public are invited to participate and ask questions live, or in advance by e-mailing smenquiries@cdic.ca or by sending a tweet or direct message to @CDIC_CA in English or @SADC_CA in French.
We look forward to having you join us. Follow us on Facebook, Twitter, Instagram and LinkedIn for regular updates.
Event Details
The event will take place via live webcast, on November 3, 2022, from 2 p.m. – 2:30 p.m. ET, Eastern Time.
OTTAWA – September 15, 2022 – The Canada Deposit Insurance Corporation (CDIC)’s Summary of the Corporate Plan has been tabled in Parliament.
Given its operating and risk environment, CDIC will focus on three main strategic objectives for the 2022-2023 to 2026-2027 planning period:
1. Be resolution ready:
- Continue to strengthen CDIC’s capabilities for early identification of risks facing member institutions
- Review and modernize the Differential Premium System and ex ante funding framework
- Strengthen resolution frameworks, policies and plans including by involving external stakeholders in simulations
2. Reinforce trust in depositor protection:
- Advance the Payout Modernization project to enable prompt and convenient reimbursement of insured deposits
- Maintain confidence in deposit protection through the Public Awareness Strategy
- Anticipate and respond to an evolving financial services landscape to strengthen deposit protection and promote financial stability
3. Strengthen organizational resilience:
- Enhance cybersecurity by developing a comprehensive cyber risk management strategy
- Continue to develop and implement our Enterprise Technology Strategy
- Prepare our return to the corporate offices via a hybrid model
- Reinforce environmental, social and governance principles within the organization
In developing the plan, CDIC considered a number of factors including Canada’s gradual economic recovery from the COVID-19 pandemic and the global risk environment which continues to shift due to the war in Ukraine, rising inflation and energy costs, as well as ongoing supply chain disruption.
The plan also reflects the rapid pace of digitalization and innovation in the financial sector resulting in new products, services and players, which are fundamentally changing the banking industry landscape.
“CDIC is well prepared to navigate this complex environment and adapt to the accelerating pace of change”, said CDIC President and CEO Leah Anderson. “We are proactively aligning our plans to the evolving environment so Canadians can rest assured we will have the strategies and toolkit to protect depositors and support the stability of the financial system.”
The Summary of the Corporate Plan (PDF, 4 MB) also includes a summary of CDIC’s 2022/2023 operating and capital budgets and borrowing plan.
About CDIC
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 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.
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Further information
Brad Evenson
Director, Communications and Public Affairs
Tel: 613-943-4395
E-mail: media@cdic.ca
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.
Links
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
E-mail: media@cdic.ca
Speaking Notes by Leah Anderson, President and CEO – CANNEX Term Deposit Conference 2022 – May 12, 2022
OTTAWA – FOR IMMEDIATE RELEASE – The Canada Deposit Insurance Corporation (CDIC) is ushering in the second phase of changes to further expand and strengthen deposit protection. The following changes are in effect as of April 30, 2022:
- Separate coverage for up to $100,000 in eligible deposits held in Registered Education Savings Plans (RESPs)
- Separate coverage for up to $100,000 in eligible deposits held in Registered Disability Savings Plans (RDSPs)
- New rules to strengthen the protection of eligible deposits held in trust and eligible deposits placed through brokers
“We’re very excited to introduce the RESP and RDSP coverage categories because they reinforce CDIC’s commitment to protecting the savings of Canadians planning for their future,” said Leah Anderson, CDIC’s President and CEO. “With this expansion of coverage, nearly all personal deposit accounts at our members are fully protected by CDIC.”
There are now eight separately protected coverage categories that can receive up to $100,000 (principal and interest combined) in protection at each CDIC member institution, making this the broadest federal deposit insurance framework in Canada’s history. CDIC coverage categories are:
- Tax-Free Savings Accounts (TFSAs)
- Registered Education Savings Plans (RESPs)
- Registered Disability Savings Plans (RDSPs)
- Registered Retirement Savings Plans (RRSPs)
- Registered Retirement Income Funds (RRIFs)
- deposits in one name
- joint deposits
- trust deposits
Eligible deposits can be held in Canadian dollars or in a foreign currency, and include:
- savings and chequing accounts
- GICs and other term deposits
- money orders, certified cheques and bank drafts issued by CDIC members.
“We are also very pleased with the new requirements for trust and brokered deposits that these changes introduce,” said Ms. Anderson. “The implementation of these new rules will allow people who place deposits in this way to feel confident that their funds are well-protected when they are held at a CDIC member institution.”
Quick facts
- Additional changes include the removal of separate coverage for deposits in mortgage tax accounts which typically have small balances and remain protected under other coverage categories.
- The updated coverage framework was announced in Budget 2019 following an extensive policy review process and has been implemented in two phases.
- Phase 1 changes came into effect on April 30th, 2020 and included:
- expanded coverage of eligible deposits held in foreign currencies
- expanded coverage of eligible deposits with terms greater than 5 years
- the elimination of coverage for travellers cheques (travellers’ cheques are no longer issued by CDIC member institutions)
About CDIC
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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For further information
Brad Evenson
Director, Communications and Public Affairs
Tel: 613-943-4395
E-mail: media@cdic.ca
Speaking Notes by Leah Anderson, President and CEO – Payments Canada Summit – April 26, 2022
Whether you started saving as a child, teenager or adult, you probably keep this hard-earned money in a bank or other financial institution. But have you ever stopped to think what would happen to your deposits if your bank failed?
The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that protects eligible deposits held in its member institutions against the risk of failure. This protection is free and automatic; you don’t need to sign up. But you should take the time to learn how it works, because not all deposits at member financial institutions are protected, and there are limits on deposits that are covered per category for each depositor.
CDIC protects eligible deposits at over 80 financial institutions in Canada, up to a maximum of $100,000 in each separately protected categories. Whether you’re just starting to build your savings or you’re nearing retirement, knowing how deposit protection works can help you make informed decisions about your money.
Recent grads. If you’ve recently graduated from high school or university and you’re entering the workforce, CDIC will protect deposits in your chequing and savings accounts, TFSAs, GICs and RRSPs at member institutions for each depositor per insured category. But not everything in these accounts is covered. Mutual funds and stocks are not covered by CDIC.
Newlyweds or new parents. If you’ve just gotten married or are starting a family, it’s important to know that CDIC protects deposits in joint accounts separately from your own personal deposits. RESPs are also covered by CDIC, provided they are structured as a trust with one or more beneficiaries. In some cases, trust deposits can be covered up to $100,000 per beneficiary. Check with your member institution to find out how much you (and your beneficiaries) are covered for.
Retirees. After a successful career, enjoy your retirement knowing that CDIC protects eligible deposits in RRIFs the same way as RRSPs. And you will still have protection of eligible TFSAs and day-to-day personal deposits, like those in chequing accounts, savings accounts or GICs.
When Canadians think of bank failures, they probably think of people lining up in front of a bank anxious to get their money out. The last time a Canadian bank went under, however, the Spice Girls had a number one hit on the radio, and today we have online banking.
Fortunately, today, surveys show that Canadians are confident that the deposits in financial institutions are safe. And there’s a good reason for that. For more than 50 years, Canada Deposit Insurance Corporation (CDIC) has protected eligible deposits at federally regulated banks, loan companies and other member institutions. So even when a bank has failed, for over five decades, no one has lost a single dollar protected under CDIC.
In fact, during the financial crisis of 2008, while other leading nations struggled to maintain confidence in their banking systems because of failures of long-standing financial titans, Canadians remained confident that the money they had in the bank would be there when they needed it.
Have you ever wondered what would happen if your bank failed? Do financial institutions even ever go under in Canada? Yes, it’s rare, but they have and it could happen.
The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that exists to protect eligible deposits to member financial institutions against their failure. Since it was established by Parliament in 1967, there have been 43 financial institution failures affecting more than two million depositors. These were stressful times, but CDIC was there to protect Canadians. No one lost a single dollar of insured deposits.
It’s important to know that not everything is protected by CDIC. Some deposits, such as mutual funds, stocks and bonds fall outside of CDIC’s umbrella.
If you bank with a CDIC member institution, your eligible deposits including savings accounts, term deposits and GICs, are automatically covered up to $100,000. It is free and automatic, but you should know how it works to fully benefit.
Talk to your financial advisor, ask about deposit insurance where you bank or invest, or contact us.
On June 4, 1996, about 2,600 Canadians discovered that their savings were not immediately available from their financial institution. They had entrusted a total of $42 million in deposits to Calgary-based Security Home Mortgage Corporation, which had closed its doors for good. The news must have momentarily sent a shiver of fear through each of its clients. Fortunately, this failed financial institution was a member of the Canada Deposit Insurance Corporation (CDIC) so customers’ eligible deposits were protected up to $60,000, per separate insured category. Coverage was free and automatic, no one ever had to apply for it, nor did they have to file a claim, payment was automatic. Within a span of three weeks, CDIC made payment of all insured deposits.
That was 20 years ago. CDIC can now pay out depositors in a matter of days. Since its creation in 1967, CDIC has stepped in following the failure of 43 member institutions like Security Home. In fact, during the past five decades, it has protected more than two million people holding about $26 billion in insured deposits at these failed institutions. No one has lost a single dollar under CDIC protection.
Although bank failures are rare in Canada, CDIC is there to protect deposits at its member institutions, big or small. In the case of larger members, CDIC has plans to ensure that all of us would have ongoing access to our deposits and day-to-day banking services.
But some things are not protected by CDIC. For example, stocks, bonds, and mutual funds are not covered.
Take steps to ensure that your money is safe by becoming informed about CDIC’s member institutions, insured categories, and limits. Talk to your financial advisor or ask about CDIC where you bank or invest.