CDIC Differential Premiums Amendments

Summary#

The federal insurance agency Canada Deposit Insurance Corporation (CDIC) updated part of the rules it uses to collect reporting data from its members. The changes mainly align CDIC’s reporting tables with the Office of the Superintendent of Financial Institutions (OSFI) capital-reporting form and move a record-retention rule into a different CDIC by-law. The instrument was registered as SOR/2021-28 on February 26, 2021 and published in the Canada Gazette on March 17, 2021.

What it does#

• Repeals the section that required CDIC members to keep records describing the data behind their reporting form and to store those records in Canada for 6 years. Those record-keeping rules are being placed instead in the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law.
• Replaces and clarifies the calculation used for “net impaired off-balance sheet assets.” It specifies subtracting the column “Individual allowance for expected credit losses” from the column “Credit equivalent amount,” and reporting “zero” if the result is negative.
• Replaces Table 6A and Table 6B in the Reporting Form so the tables match the rows and columns used in OSFI’s Basel Capital Adequacy Reporting (BCAR) form.
• Clarifies that the “Stage 1 and Stage 2 allowance on balance sheet assets” is the sum of two separate data points that were split in the BCAR form.
• Timing: the reporting and table changes apply for the 2021 premium year. The moved record-keeping rule comes into force when section 21 of the Canada–United States–Mexico Agreement Implementation Act comes into force, or on registration if that date has already passed.

Who's affected#

• CDIC member institutions — mainly banks and other deposit-taking institutions that must file CDIC’s differential-premium reporting form.
• Canada Deposit Insurance Corporation (CDIC) and Office of the Superintendent of Financial Institutions (OSFI), because the change aligns CDIC’s reporting with OSFI’s BCAR form.
• The regulatory notice says the amendments do not create new costs and the small business lens does not apply, so small businesses are not expected to be affected directly.

Why it matters#

• Aligning CDIC’s reporting tables with OSFI’s BCAR form reduces confusion and the risk of mismatched data between two federal regulators. That makes it easier for institutions to prepare filings that satisfy both organizations.
• Moving the record-retention rule into the Deposit Insurance Policy By-law is mostly administrative. It keeps the same practical requirement (records kept in Canada and retained for 6 years) but places it in a different rulebook to reflect related legal obligations.
• The changes are technical rather than policy-driven. CDIC says they do not add regulatory costs or new reporting burdens.