Government launches consultations as part of deposit insurance framework review

From: Department of Finance Canada

News release

July 22, 2025 - Ottawa, Ontario - Department of Finance Canada

The federal deposit insurance framework safeguards vital elements of Canada’s financial system by protecting Canadians’ deposits in the unlikely event of a bank failure.

Today, the government is launching consultations in keeping with its commitment to enhance Canada’s robust depositor protection framework to support the evolving needs of Canadians and the banking sector at large.

Maintaining the effectiveness of the deposit insurance framework requires ongoing assessment to adapt to the changing nature of financial systems. This is part of the government’s regular reviews of Canada’s financial safety net to ensure it remains effective and responsive to emerging risks and continues to promote high levels of public confidence.

The government invites all interested Canadians and stakeholders to review the consultation paper and to email their comments on the questions and proposals by September 26, 2025, to DepositInsuranceReview-Examenducadredassurancedepots@fin.gc.ca with “Deposit Insurance Review” as the subject line.

Quick facts

  • The Canada Deposit Insurance Corporation’s (CDIC) deposit protection is free and automatic when funds are deposited with one of its member banks or credit unions. CDIC’s mission is to protect depositors in the unlikely event their bank fails (when a bank experiences severe financial difficulties so that it cannot meet its financial obligations and becomes non-viable). There has not been a deposit insurance payout in almost 30 years.

  • The government’s review of the deposit insurance framework for federally regulated financial institutions is being led by the Department of Finance Canada, in collaboration with CDIC and other financial sector agencies. 

  • The last review of the deposit insurance framework began in 2014 and led to legislative changes in 2018. These included extending coverage to foreign currency deposits, treating all registered products in the same manner by creating new categories, and improving the rules for trust deposit accounts.

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Contacts

Media may contact:

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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2025-07-22