CDIC Building Capacity to Resolve Failed Banks

TORONTO, ONTARIO--(Marketwired - Nov. 25, 2013) - Over the past year, Canada Deposit Insurance Corporation (CDIC) has taken major steps forward in its ability to handle the failure of a member institution of any size and complexity.

"In the post-financial crisis era, the supervisory landscape for the financial sector has changed drastically for Canada and for CDIC," said Michèle Bourque, President and CEO, in remarks at CDIC's annual public meeting, held in Toronto today.

"We recognized the need for better tools to cope with member institution failures and we are building greater capacity to deal with them."

Corporate achievements, highlighted in CDIC's 2012-2013 Annual Report tabled in Parliament recently, include:

• reducing the time required to determine the amount of insured deposits in a failure;
• developing the first set of resolution plans for large banks;
• confirming that CDIC is well positioned to handle potential failures, based on international peer assessments;
• expanding our social media activities to boost public awareness of CDIC coverage.

CDIC has 80 financial institution members and, as at April 30, 2013, it insured deposits totaling $665 billion.

CDIC's Annual Report, which also outlines CDIC's financial performance over the past year, can be found here.

CDIC is a federal Crown corporation that contributes to the stability of the Canadian financial system by providing deposit insurance against the loss of eligible deposits at member institutions in the event of failure. Eligible deposits are automatically covered to a limit of $100,000 per insured category at each member institution. CDIC 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. CDIC is funded by premiums paid by member institutions and does not receive public funds to operate.