CDIC Differential Premiums By-law Amendment

Summary#

Canada Deposit Insurance Corporation (CDIC) made small technical changes to the Canada Deposit Insurance Corporation Differential Premiums By-law. The amendments update form and schedule names so CDIC’s reporting lines up with the reporting templates used by the regulator. The by-law was registered on March 8, 2024 and takes effect on the day of registration.

What it does#

• Updates wording and form names the CDIC asks its members to submit. For example, it replaces older titles like “Consolidated Statement of Income” and “Return of Impaired Assets” with newer titles such as “Consolidated Statement of Comprehensive Income” and “Return of Allowances for Expected Credit Losses.”
• Changes a number of internal references to align with the Office of the Superintendent of Financial Institutions’ reporting schedules (for example, references to older schedule numbers are replaced with current BCAR schedule numbers such as Schedule 10.010 – Ratio Calculations).
• Renames one reporting label from the “All in” target to the “Supervisory Target Tier 1 Capital Ratio.”
• Updates several tables and line items in the reporting form to point to the correct BCAR or LRR schedules (derivatives, off-balance-sheet items, capital elements, securitization and allowance items).
• Revises the wording in Schedule 3 that CDIC uses to decide premium categories so it refers to the “supervisory target” Tier 1 capital ratio rather than the older “all in” phrase.
• States the by-law comes into force on the day it is registered. The CDIC says the changes apply for the 2024 premium year.

Who's affected#

• CDIC member institutions — mainly banks and other federally regulated deposit-taking institutions that file the CDIC premium reporting form.
• Office of the Superintendent of Financial Institutions (OSFI) — the changes align CDIC references with OSFI’s reporting forms, so OSFI’s templates are the source of the updated labels.
• The changes are technical. If it is unclear whether a specific smaller institution is affected, it is because the by-law applies to CDIC member institutions generally.

Why it matters#

• The changes are mostly housekeeping to reduce confusion when institutions fill out forms. Better alignment with OSFI’s current templates should make it easier and less error-prone for banks to provide the data CDIC needs to set differential premiums.
• According to CDIC’s analysis, these amendments do not change how premiums are calculated and do not add regulatory costs or new reporting burdens.
• For the public, the practical effect is indirect: clearer reporting supports CDIC’s ability to classify members and set the annual insurance premiums those institutions pay, which in turn affects the system that protects eligible deposits.