CDIC and the Office of the Superintendent of Financial Institutions (OSFI) have jointly developed a Guide to Intervention for Federal Financial Institutions. The guide provides a framework for responding effectively to circumstances that could lead to the instability of a member institution.
Formalizing a process for early intervention if potential problems are identified increases the likelihood of averting a member institution's failure.
The guide outlines the actions or options available to OSFI and CDIC, individually and jointly, to address the circumstances that are of concern. It defines a graduated and progressive set of responses, depending on the member institution's particular situation and perceived weaknesses.
The guide explicitly describes and makes transparent the supervisory assessment and intervention process. This makes the system easier to understand and provides positive incentives for all parties to reduce the risk of losses arising from a member institution's failure.
CDIC plans to develop this guide further and to coordinate the procedures it outlines with provincial regulators.
Guide to Intervention for Federal Financial Institutions (PDF)
Last modified : 8 October 2001
Formalizing a process for early intervention if potential problems are identified increases the likelihood of averting a member institution's failure.
The guide outlines the actions or options available to OSFI and CDIC, individually and jointly, to address the circumstances that are of concern. It defines a graduated and progressive set of responses, depending on the member institution's particular situation and perceived weaknesses.
The guide explicitly describes and makes transparent the supervisory assessment and intervention process. This makes the system easier to understand and provides positive incentives for all parties to reduce the risk of losses arising from a member institution's failure.
CDIC plans to develop this guide further and to coordinate the procedures it outlines with provincial regulators.
Guide to Intervention for Federal Financial Institutions (PDF)
Last modified : 8 October 2001