Canada Gazette, Part I, Volume 146, Number 42: By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law
October 20, 2012
Statutory authority
Canada Deposit Insurance Corporation Act
Sponsoring agency
Canada Deposit Insurance Corporation
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the By-law.)
Description
The Board of Directors of the Canada Deposit Insurance Corporation (“CDIC”) made the Canada Deposit Insurance Corporation Differential Premiums By-law (the “By-law”) on March 3, 1999, pursuant to subsection 21(2) and paragraph 11(2)(g) of the Canada Deposit Insurance Corporation Act (the “CDIC Act”). Subsection 21(2) of the CDIC Act authorizes the CDIC Board of Directors to make by-laws establishing a system of classifying member institutions into different categories, setting out the criteria or factors the CDIC will consider in classifying members into categories, establishing the procedures the CDIC will follow in classifying members, and fixing the amount of, or providing a manner of determining the amount of, the annual premium applicable to each category. The CDIC Board of Directors has amended the By-law on January 12 and December 6, 2000; July 26, 2001; March 7, 2002; March 3, 2004; February 9 and April 15, 2005; February 8 and December 6, 2006; December 3, 2008; December 2, 2009; December 8, 2010; and December 7, 2011.
The CDIC annually reviews the By-law to ensure that it remains up to date. As a result of the review, it was noted that technical amendments need to be made to Schedule 2, Part 2, Reporting Form (Reporting Form) to reflect changes to regulatory forms. The changes are reflected in the proposed By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law (the “Amending By-law”).
The following table provides more detail about the amendments, which are all technical in nature.
| AMENDING BY-LAW SECTION(S) | EXPLANATION |
|---|---|
| Schedule 2, Part 2, Reporting Form | |
| 1 | Elements in 1.1, 1.2 and 1.3 of Item 1, Capital Adequacy Measures
|
| 2 | Elements and 2.1 of Item 2, Return on Risk-Weighted Assets (%)
|
| 3 | Elements of Item 6, Efficiency Ratio (%)
|
| 4 | Elements of Item 7, Three-Year Moving Average Asset Growth (%)
|
| 5 | By-law comes into force on registration. |
Alternatives
There are no available alternatives. The CDIC Act specifically provides that the criteria or factors to be taken into account in determining the category in which a member institution is classified and fixing or establishing the method of determining the amount of the annual premium applicable to each category may only be made by by-law.
Benefits and costs
No additional costs should be attributed directly to these changes.
Consultation
As the changes are technical in nature, only consultation through prepublication in Part Ⅰ of the Canada Gazette is necessary.
Compliance and enforcement
There are no compliance or enforcement issues.
Contact
Sandra Chisholm
Director, Insurance
Canada Deposit Insurance Corporation
50 O’Connor Street, 17th Floor
Ottawa, Ontario
K1P 5W5
Telephone: 613-943-1976
Fax: 613-992-8219
Email: schisholm@cdic.ca
PROPOSED REGULATORY TEXT
Notice is given that the Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(g) (see footnote a) and subsection 21(2) (see footnote b) of the Canada Deposit Insurance Corporation Act (see footnote c), proposes to make the annexed By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law.
Interested persons may make representations concerning the proposed By-law within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part Ⅰ, and the date of publication of this notice, and be addressed to Sandra Chisholm, Director, Insurance, Canada Deposit Insurance Corporation, 50 O’Connor Street, 17th Floor, Ottawa, Ontario K1P 5W5 (email: schisholm@cdic.ca).
Ottawa, October 4, 2012
MICHÈLE BOURQUE
President and Chief Executive Officer
Canada Deposit Insurance Corporation
BY-LAW AMENDING THE CANADA DEPOSIT INSURANCE CORPORATION DIFFERENTIAL PREMIUMS BY-LAW
AMENDMENTS
1. (1) The portion of item 1.1 of item 1 of the Reporting Form set out in Part 2 of Schedule 2 to the Canada Deposit Insurance Corporation Differential Premiums By-law (see footnote 1) beginning with the heading “Elements” and ending before item 1.1.1 is replaced by the following:
(2) The portion of item 1.2 of item 1 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law beginning with the heading “Elements” and ending before item 1.2.1 is replaced by the following:
(3) The portion of item 1.3 of item 1 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law beginning with the heading “Elements” and ending before item 1.3.1 is replaced by the following:
2. The portion of item 2 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law beginning with the heading “Elements” and ending before element 2.2 is replaced by the following:
Elements
Use the instructions below to arrive at the elements of the formula. Refer to the following documents:- (a) the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI, Reporting Manual, “Income Statement” tab, completed in accordance with that Manual as of the fiscal year ending in the year preceding the filing year; and
- (b) the Basel II Capital Adequacy Reporting – Credit, Market and Operational Risk (BCAR) form, Reporting Manual, “Basel Capital Adequacy Reporting (BCAR)” tab, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.
2.1 Net Income or Loss
The net income or loss attributable to equity holders and non-controlling interests (the latter to be reported as a negative number) is the amount set out in item 31 of the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI.3. Paragraph (c) under the heading “Elements” in item 6 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is replaced by the following:
- (c) the Basel II Capital Adequacy Reporting – Credit, Market and Operational Risk (BCAR) form, Reporting Manual, “Basel Capital Adequacy Reporting (BCAR)” tab, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.
4. (1) The portion of item 7 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law beginning with the heading “Elements” and ending before the heading “Assets for Years 1 to 4” is replaced by the following:
(2) The portion of item 7 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law under the heading “Assets for Years 1 to 4” beginning with the expression “For fiscal years ending in 2008, the total of” and ending before the expression “For fiscal years ending in 2009, the total of” is repealed.
(3) Paragraphs (a) and (b) after the expression “For fiscal years ending in 2011 or later, the total of” in item 7 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law are replaced by the following:
- (a) the amount of net on- and off-balance sheet assets set out for item “Q” of Schedule 1 – Ratio and Assets to Capital Multiple Calculations of the BCAR form plus the transitional adjustment for grandfathered treatment of certain assets not derecognized under IFRS set out for item “A” of Schedule 45 – Balance Sheet Coverage by Risk Type and Reconciliation to Consolidated Balance Sheet of the BCAR form;
- (b) the total of the amounts set out in the column “Total” for items 1(a)(i)(A)(I) to (X) (Securitized Assets – Unrecognized – Institution’s own assets (bank originated or purchased) – Traditional securitizations) of Section I – Memo Items of the Consolidated Monthly Balance Sheet; and
COMING INTO FORCE
5. This By-law comes into force on the day on which it is registered.
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