OTTAWA, ONTARIO -- (Marketwired) -- 04/20/16 -- Canada Deposit Insurance Corporation today welcomed the introduction of the proposed Bank Recapitalization "Bail-in" Regime legislation.
Bail-in is an important tool that would allow CDIC, as the resolution authority for Canada's systemically important banks, to ensure failing institutions remain open for Canadians, while losses are covered by shareholders and certain investors.
"Bail-in would not change the deposit protection offered by CDIC," said Michele Bourque, President and CEO of CDIC.
"We think it is important that Canadians understand their hard-earned savings remain protected by CDIC, as they have been for nearly a half century."
As Canada's resolution authority, CDIC takes the lead in handling the failure of its member institutions - from the smallest to the largest - to protect eligible deposits.
Ms. Bourque noted that adopting bail-in would be consistent with global standards set out by the Financial Stability Board, which include ensuring the continuity of essential financial services in failure.
Since it was created in 1967, CDIC has dealt with 43 member failures affecting some 2 million Canadians. No one has lost a dollar of deposits under CDIC protection.
Canada Deposit Insurance Corporation (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 can include banks, trust and loan companies, federally regulated credit unions, 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.
Contacts:
Brad Evenson
Director, Communications and Public Affairs
613.943.4395
media@cdic.ca
