CDIC Premiums By-law Update

Summary#

The Board of Canada Deposit Insurance Corporation (CDIC) published a proposed technical update to the Canada Deposit Insurance Corporation Differential Premiums By-law on October 21, 2023. The changes mostly update wording and cross‑references to match the reporting forms used by the Office of the Superintendent of Financial Institutions (OSFI); they do not change how CDIC’s premiums are calculated and are expected to take effect for the 2024 premium year. Public comments are accepted for 30 days after publication.

What it does#

• Replaces some report names to match OSFI’s current forms (for example, changing “Consolidated Statement of Income” to “Consolidated Statement of Comprehensive Income” and “Return of Impaired Assets” to “Return of Allowances for Expected Credit Losses”).
• Updates many internal cross‑references to OSFI schedules so the By‑law points to the newer schedule numbers (for example, references to older BCAR schedules are replaced with Schedule 10.010, Schedule 10.050, Schedule 20.010, Schedule 10.070, Schedule 70.030, and others).
• Renames one capital metric from an “All in” target to a Supervisory Target Tier 1 Capital Ratio, and adjusts related wording so the By‑law refers to the supervisory target set by the regulator.
• Rewords some items about off‑balance sheet and securitization figures (for example, “Eligible servicer cash advance facilities” becomes “Eligible servicer cash advances or facilities”).
• Clarifies how certain tables and ratio fields in the By‑law should be completed using the updated OSFI schedule numbers.
• The notice invites public comments (it is a proposed amendment, not yet final). If adopted, the changes are intended to apply for the 2024 premium year and the By‑law would come into force when it is registered.

Who's affected#

• CDIC member institutions — the federally regulated banks and other deposit‑taking institutions that report to CDIC and pay CDIC premiums — are the main group affected because the By‑law changes how they must identify and report certain figures.
• Office of the Superintendent of Financial Institutions (OSFI) and CDIC staff will use the aligned references when exchanging and checking data.
• The notice says these are technical updates and does not indicate changes that would directly affect everyday bank customers. If it is unclear whether a specific institution or figure is affected, the institution would be the best source of clarification.

Why it matters#

• Aligning the By‑law’s wording and cross‑references with current OSFI reporting forms should reduce confusion about which numbers institutions must supply.
• That helps CDIC receive the right data to classify institutions and calculate premiums without adding extra work or cost, according to the notice.
• Because these are technical fixes rather than changes to premium formulas or thresholds, the immediate effect on consumers or premiums is expected to be minimal.