Canada Deposit Insurance Corporation Differential Premiums By-law (SOR/99-120)

18 Section 16 does not apply to a member institution that

• (a) is a member institution classified in accordance with subsection 7(1) or (2.1); or

• (b) is a subsidiary of another member institution.

19 [Repealed, SOR/2021-28, s. 1]

Quantitative Factors

• 20 (1) The Corporation shall review the Reporting Form and other documents submitted by a member institution under section 15 or 16, and shall, where the Reporting Form and other documents have not been completed in accordance with this By-law, make whatever adjustments are necessary.

• (2) If the Corporation makes an adjustment to the Reporting Form under subsection (1), it shall use the adjusted Reporting Form for the purpose of assigning scores under sections 21 to 27.

21 The Corporation shall assign to each member institution the sum of the scores set out in columns 2 and 4 of Part 1 of Schedule 3 that correspond, respectively, to the descriptions set out in columns 1 and 3 of that Part that apply to the results obtained for that institution in respect of elements 1.1 to 1.5 of item 1 of the Reporting Form.

22 The Corporation shall compare the result obtained for a member institution in respect of the factor in item 2 of the Reporting Form with the range of results set out for that factor in column 2 of item 4 of Part 2 of Schedule 3 and shall assign to the institution the score set out in column 3 of that item that corresponds to that institution’s result.

• 23 (1) Subject to section 27, the Corporation shall compare the results obtained for a member institution in respect of each of the factors in items 3 and 4 of the Reporting Form with the range of results set out for those factors in items 5 and 6, respectively, in column 2 of Part 2 of Schedule 3 and shall assign to the institution the scores set out in column 3 of each of those items that correspond to that institution’s results, respectively.

• (2) For the purpose of subsection (1), if an amalgamated member institution formed by an amalgamation involving only one member institution has been operating as a member institution for less than three fiscal years consisting of at least 12 months each, the scores assigned to the amalgamated member institution shall be based on the results obtained for the institution using the financial information

  • (a) of the amalgamated member institution for the fiscal years during which it has been operating as a member institution; and

  • (b) of the amalgamating member institution for the other applicable fiscal years.

24 The Corporation shall compare the results obtained for a member institution in respect of each of the factors in items 5 and 6 of the Reporting Form with the range of results set out for those factors in column 2 of items 7 and 8, respectively, of Part 2 of Schedule 3 and shall assign to the institution the scores set out in column 3 of each of those items that correspond to that institution’s results, respectively.

• 24.1 (1) Subject to section 27, the Corporation shall compare the result obtained for a member institution in respect of the factor in item 7 of the Reporting Form with the range of results set out for that factor in column 2 of item 9 of Part 2 of Schedule 3 and shall assign to the institution the score set out in column 3 of that item that corresponds to that institution’s result.

• (2) For the purpose of subsection (1), if an amalgamated member institution formed by an amalgamation involving only one member institution has been operating as a member institution for less than four fiscal years consisting of at least 12 months each, the score assigned to the amalgamated member institution shall be based on the result obtained for the institution using the financial information

  • (a) of the amalgamated member institution for the fiscal years during which it has been operating as a member institution; and

  • (b) of the amalgamating member institution for the other applicable fiscal years.

25 The Corporation shall assign the score for the factor in item 8 of the Reporting Form to a member institution that is not a domestic systemically important bank as follows:

• (a) if the result of the threshold formula in item 8 of the Reporting Form is less than 10 per cent, the score to be assigned is 5; and

• (b) if the result of the threshold formula in item 8 of the Reporting Form is equal to or greater than 10 per cent, the score to be assigned is the lowest of the scores set out for a type of mortgage loan in column “E” of an item of Table 8 to item 8 of the Reporting Form.

25.1 The Corporation shall assign the score for the factor in item 8-1 of the Reporting Form to a member institution that is a domestic systemically important bank as follows:

• (a) if the result of the threshold formula in element 8-1.1 of the Reporting Form is equal to or less than 100 per cent, the score to be assigned is 5; and

• (b) if the result of the threshold formula in element 8-1.1 of the Reporting Form is greater than 100 per cent, the score to be assigned is

  • (i) 3, if the result of the formula in element 8-1.2 is less than 50 per cent; and

  • (ii) 0, if the result of the formula in element 8-1.2 is equal to or greater than 50 per cent.

26 The Corporation shall assign the score to a member institution for the factor in item 9 of the Reporting Form as follows:

• (a) if the result of the threshold formula in item 8 of the Reporting Form is greater than 90 per cent, the score to be assigned is 5; and

• (b) if the result of the threshold formula in item 8 of the Reporting Form is equal to or less than 90%, the Corporation shall compare the results obtained for the member institution in respect of that factor with the range of results set out for that factor in column 2 of item 12 of Part 2 of Schedule 3 and shall assign to the institution the score set out in column 3 of that item that corresponds to that institution’s results, respectively.

• 27 (1) If a member institution has been operating as a member institution for less than five fiscal years consisting of at least 12 months each, the combined score in respect of the factors in items 3, 4 and 7 of the Reporting Form shall be determined in accordance with the formula

  (A ÷ 45) × 15

  where

  A

  is the sum of the scores assigned to the member institution under sections 21, 22, 24, 25 and 26.

• (2) If an amalgamated member institution formed by an amalgamation involving two or more member institutions has been operating as a member institution for less than three fiscal years consisting of a least 12 months each, the combined score in respect of the factors in items 3, 4 and 7 of the Reporting Form shall be determined in accordance with subsection (1).

• (3) If a member institution has been operating as a member institution for five fiscal years consisting of at least 12 months each, the score in respect of the factors in item 7 of the Reporting Form shall be determined in accordance with the formula

  (A ÷ 55) × 5

  where

  A

  is the sum of the scores assigned to the member institution under sections 21, 22, 23, 24, 25 and 26.

• (4) If an amalgamated member institution formed by an amalgamation involving two or more member institutions has been operating as a member institution for three fiscal years consisting of at least 12 months each, the score in respect of the factors in item 7 of the Reporting form shall be determined in accordance with subsection (3).

Qualitative Factors and Criteria

Examiner’s Rating

• 28 (1) For the purposes of this section, examiner’s rating in respect of a member institution means the rating on a scale of one to five that is assigned to the institution by the examiner in the course of carrying out the examiner’s duties.

• (2) Subject to subsection (3), the Corporation shall assign to each member institution the score set out in column 2 of an item of Schedule 4 that corresponds to the examiner’s rating for the institution set out in column 1 of that item, which rating is the most recent of the following ratings that is available to the Corporation, namely,

  • (a) the examiner’s rating as of April 30 of the filing year;

  • (b) the most recent examiner’s rating assigned to the institution during the period beginning on May 1 of the year preceding the filing year and ending on April 29 of the filing year; and

  • (c) the examiner’s rating used for the evaluation of the member institution for the preceding premium year.

• (3) If none of the examiner’s ratings referred to in subsection (2) are available to the Corporation for the member institution, the score to be assigned for the purposes of that subsection shall be the result determined in accordance with the formula

  (A ÷ 60) × 35

  where

  A

  is the sum of the scores assigned to the member institution under sections 21 to 27.

29 [Repealed, SOR/2006-47, s. 5]

29.1 [Repealed, SOR/2005-116, s. 2]

Other Information

• 30 (1) In this section, supervisory authority means an examiner, a regulator, any foreign authority that monitors the activities of financial institutions and a securities commission, a stock exchange or any other similar authority.

• (2) The Corporation shall, based on information about the safety, soundness, financial condition and viability of each member institution, including such information that is produced by supervisory authorities, rating agencies, industry analysts or other experts, that has come to the attention of the Corporation, including information about the affiliates of the member institution, assign to the institution a score of

  • (a) 5 if, as of April 30 of the filing year, no information has come to its attention about circumstances that represent a threat to or compromise the safety, soundness, financial condition or viability of the institution;

  • (b) 3 if, as of April 30 of the filing year, information has come to its attention about circumstances that represent a threat to the safety, soundness, financial condition or viability of the institution; and

  • (c) 0 if, as of April 30 of the filing year, information has come to its attention about circumstances that compromise the safety, soundness, financial condition or viability of the institution.

Coming into Force

31 This By-law comes into force on March 31, 1999.