CDIC Differential Premiums By-law Update
Canada Gazette, Part I, Volume 154, Number 42: By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law
The Canada Deposit Insurance Corporation published a proposed technical amendment to its Differential Premiums By-law on 2020-10-17 to align CDIC reporting with OSFI’s Basel Capital Adequacy Reporting (BCAR) form. The amendment clarifies the net impaired off-balance-sheet assets calculation, replaces Tables 6A and 6B to match BCAR Schedules, and clarifies how Stage 1 and Stage 2 allowances are reported; CDIC says there are no new costs. The proposal applies for the 2021 premium year and was open for 30 days of comment.
- Published
- October 17, 2020
- Department
- Unavailable
- Section
- REGULATORY IMPACT ANALYSIS STATEMENT
- Comment deadline
- November 16, 2020
- Effective date
- Unavailable
- Publication part
- Part I
Summary
Summary#
The Canada Deposit Insurance Corporation (CDIC) published a proposed amendment to the Canada Deposit Insurance Corporation Differential Premiums By-law on October 17, 2020. The change is technical: it updates how banks and other CDIC members report certain credit exposures so the by-law lines up with the Basel Capital Adequacy Reporting form (BCAR form) used by regulators.
What it does#
- Clarifies how to calculate net impaired off‑balance‑sheet assets in the CDIC reporting form.
- Replaces and updates two reporting tables (Tables 6A and 6B) so they match the columns and rows used in the BCAR form (Schedules 39 and 40).
- Clarifies that the reported Stage 1 and Stage 2 allowances on balance‑sheet assets must be the sum of two BCAR data points (now split in the BCAR form).
- These are technical wording and form updates only. CDIC says they do not change the substance of the by‑law or add new charges or administrative costs.
Who's affected#
- CDIC member institutions (banks and other deposit-taking institutions that report to CDIC) will be the ones to use the updated reporting lines.
- Office of the Superintendent of Financial Institutions (OSFI) is the regulator whose reporting form (the BCAR form) the by‑law is being aligned with.
- The general public and small businesses are not expected to see direct effects; CDIC says there are no new costs.
Why it matters#
- The change makes CDIC’s premium reporting form match the current BCAR form. That should reduce confusion and the chance of mismatched data between banks and regulators.
- CDIC intends the amendments to apply for the 2021 premium year. The item is a proposal open for comment for 30 days after publication.
Key topics
Source: Canada Gazette