Government of Canada Adopts Regulations to Support a Sound and Resilient Financial System
April 18, 2018 – Ottawa, Ontario – Department of Finance Canada
The Government of Canada is committed to building greater confidence in Canada's strong and well-functioning financial sector. An economy that works for the middle class and those working hard to join it relies on trust and confidence in our financial institutions.
Today, the Government published regulations in Part II of the Canada Gazette that implement key features of the Bank Recapitalization (Bail-in) Regime, introduced in 2016 for Canada's domestic systemically important banks. The regime provides authorities with an additional tool to deal with the unlikely failure of a major bank, in a manner that preserves financial stability while protecting the interests of taxpayers.
The regulations identify which types of debt instruments will be subject to the regime. The bail-in regulations do not apply to deposits—including chequing accounts, savings accounts and term deposits such as Guaranteed Investment Certificates—which will continue to benefit from the Canada Deposit Insurance Corporation deposit insurance framework.
The regime is consistent with international standards and fulfills the Budget 2016 commitment to introduce a bail-in regime.
Media may contact:
Office of the Minister of Finance
Department of Finance Canada
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