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The Canada Deposit Insurance Corporation (CDIC) was established by Parliament in 1967. Our mandate is to protect depositors by reimbursing them for insured deposits in the event of a member institution's failure. In addition, a key part of fulfilling our mandate is to identify problems early and take prompt corrective action. If we did not take this approach, resolution methods would be limited to formal liquidation and costs would be substantially higher.
The "basics" that guide us are found in our enabling legislation. Our objectives are to provide deposit insurance and to promote and otherwise contribute to the stability of the financial system in Canada. We are charged with pursuing these objectives for the benefit of depositors — and in such a way as to minimize our exposure to loss.
Consumer confidence is essential to the effective functioning of the financial system. Doubts and concerns about one institution can, through contagion and other systemic issues, affect otherwise healthy institutions — potentially threatening the integrity of the financial sector and the entire economy. Deposit insurance is an integral part of a country's safety net.
Deposit insurance is part of a larger regulatory system to ensure that Canadians enjoy a high degree of financial stability. This places a high importance on deposit insurance, and gives true meaning to the mutual interest in fostering even stronger links between CDIC and financial institutions.
Financial institutions form an important stakeholder constituency for CDIC. In today's rapidly changing financial world, we share many concerns and interests. In particular, the stronger member institutions are, the better it is for CDIC. Furthermore, as a financial institution, a brokerage house or investment advisor, you deal directly with consumers and, in particular, those purchasing deposit products.
In considering the current and future financial environment, two issues come to mind. The first one is the ability of CDIC to meet its corporate objectives in a fast-changing world. The second one is the ability of Canadian consumers to understand the implications of these changes when buying deposit products and other investments.
Last modified : 26 July 2005
The "basics" that guide us are found in our enabling legislation. Our objectives are to provide deposit insurance and to promote and otherwise contribute to the stability of the financial system in Canada. We are charged with pursuing these objectives for the benefit of depositors — and in such a way as to minimize our exposure to loss.
Consumer confidence is essential to the effective functioning of the financial system. Doubts and concerns about one institution can, through contagion and other systemic issues, affect otherwise healthy institutions — potentially threatening the integrity of the financial sector and the entire economy. Deposit insurance is an integral part of a country's safety net.
Deposit insurance is part of a larger regulatory system to ensure that Canadians enjoy a high degree of financial stability. This places a high importance on deposit insurance, and gives true meaning to the mutual interest in fostering even stronger links between CDIC and financial institutions.
Financial institutions form an important stakeholder constituency for CDIC. In today's rapidly changing financial world, we share many concerns and interests. In particular, the stronger member institutions are, the better it is for CDIC. Furthermore, as a financial institution, a brokerage house or investment advisor, you deal directly with consumers and, in particular, those purchasing deposit products.
In considering the current and future financial environment, two issues come to mind. The first one is the ability of CDIC to meet its corporate objectives in a fast-changing world. The second one is the ability of Canadian consumers to understand the implications of these changes when buying deposit products and other investments.
Last modified : 26 July 2005
