Canada Deposit Insurance Corporation Differential Premiums By-law (SOR/2025-165)

Marginal note:Definitions

1 The following definitions apply in this By-law.

Act

Act means the Canada Deposit Insurance Corporation Act. (Loi)

fall return

fall return means a return referred to in paragraph 5(1)(a). (déclaration automnale)

new

new, with respect to a member institution, means that the member institution has been operating as a member institution for less than two full premium years and, if it was formed by an amalgamation, none of its amalgamating institutions were member institutions immediately before the amalgamation. (nouvelle)

spring return

spring return means a return referred to in paragraph 5(1)(b). (déclaration printanière)

stage of intervention

stage of intervention means a stage of intervention that is assigned as a result of an assessment carried out in accordance with the Guide to Intervention for Federally Regulated Deposit-Taking Institutions, published by the Office of the Superintendent of Financial Institutions, as amended from time to time. (stade d’intervention)

subsidiary

subsidiary has the same meaning as in section 2 of the Bank Act. (filiale)

Marginal note:Calculation

• The following provision is not in force.

  2 (1) For the purposes of paragraphs 21(1)(a) and 23(1)(a) of the Act, the annual premium for a member institution is the greater of

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    (a) $5,000, and

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    (b) subject to subsections (2) and (3), the result determined in accordance with the formula

    A × B × (C + D) ÷ 2

    where

    A

    is one third of one per cent, or any smaller proportion of one per cent that is fixed by the Governor in Council under paragraph 21(4)(b) of the Act,

    B

    is an amount equal to the sum of the deposits with the member institution that are referred to in paragraph 21(4)(b) of the Act or, for the purpose of paragraph 23(1)(a) of the Act, the sum of the deposits with the member institution that are referred to in that paragraph,

    C

    is the percentage set out in column 3 of Schedule 1 that corresponds to

    • (i) the premium category set out in column 1 in which the member institution was classified as of January 15 of the calendar year in which the premium year begins, including following the operation of section 11, if applicable,

    • (ii) if the member institution became a member institution during the period beginning on January 16 and ending on April 30 of the calendar year in which the premium year begins, the premium category set out in column 1 in which it is classified as of July 15 of the premium year, or

    • (iii) if the annual premium is being determined for the purpose of paragraph 23(1)(a) of the Act,

      • (A) premium category 2, or

      • (B) premium category 3, in the case of a new member institution that has been assigned a stage of intervention, and

    D

    is the percentage set out in column 3 of Schedule 1 that corresponds to

    • (i) the premium category set out in column 1 in which the member institution is classified as of July 15 of the premium year, or

    • (ii) if the annual premium is being determined for the purpose of paragraph 23(1)(a) of the Act,

      • (A) premium category 2, or

      • (B) premium category 3, in the case of a new member institution that has been assigned a stage of intervention.

• The following provision is not in force.

  Marginal note:Late submission of fall return

  (2) If a member institution’s fall return is submitted after October 31 of the year preceding the premium year but before July 3 of the premium year, C in the formula in paragraph (1)(b) is replaced by the formula

  ((C × E) + (F × G)) ÷ H

  where

  C

  is the percentage referred to in subparagraph (i) of the description of C in paragraph (1)(b);

  E

  is the number of days in the period beginning on the day after the day on which the member institution submits its fall return to the Corporation and ending on October 31 of the premium year;

  F

  is the percentage set out in column 3 of Schedule 1 that corresponds to premium category 5;

  G

  is the number of days in the period beginning on November 1 of the year preceding the premium year and ending on the day on which the member institution submits its fall return to the Corporation; and

  H

  is the number of days in the period beginning on November 1 of the year preceding the premium year and ending on October 31 of the premium year.

• The following provision is not in force.

  Marginal note:Late submission of spring return

  (3) If a member institution’s spring return is submitted after April 30 of the calendar year in which the premium year begins but before July 3 of the premium year, D in the formula in paragraph (1)(b) is replaced by the formula

  ((D × I) + (F × J)) ÷ K

  where

  D

  is the percentage referred to in subparagraph (i) of the description of D in paragraph (1)(b);

  I

  is the number of days in the period beginning on the day after the day on which the member institution submits its spring return to the Corporation and ending on April 30 of the premium year;

  F

  is the percentage set out in column 3 of Schedule 1 that corresponds to premium category 5;

  J

  is the number of days in the period beginning on May 1 of the premium year and ending on the day on which the member institution submits its spring return to the Corporation; and

  K

  is the number of days in the premium year.

• The following provision is not in force.

  Marginal note:Exception — 2026–2027 premium year

  (4) Despite subsection (1), for the purposes of paragraphs 21(1)(a) and 23(1)(a) of the Act, the annual premium for a member institution for the premium year that begins on May 1, 2026 is the greater of

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    (a) $5,000, and

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    (b) the result determined in accordance with the formula

    A × B × D

    where

    A

    is the percentage referred to in the description of A in paragraph (1)(b),

    B

    is the amount referred to in the description of B in paragraph (1)(b), and

    D

    is the percentage referred to in the description of D in paragraph (1)(b) or, if the member institution’s spring return is submitted after April 30 of the calendar year in which the premium year begins but before July 3 of the premium year, the result of the formula in subsection (3).

Marginal note:Corporation’s obligation

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  3 (1) The Corporation must, not later than January 15 and July 15 of each year, notify every member institution of the premium category in which the member institution is, as of those dates, to be classified in accordance with subsections (2) to (8).

• The following provision is not in force.

  Marginal note:Determination

  (2) Subject to subsections (3) to (8), the premium category in which a member institution is to be classified as of January 15 or July 15 is the category set out in column 1 of Schedule 1 that corresponds to the member institution’s total score set out in column 2, as determined under section 4 for the purpose of its classification as of that date.

• The following provision is not in force.

  Marginal note:Exception — new member institution

  (3) A new member institution must be classified in premium category 2 unless it

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    (a) has been assigned a stage of intervention;

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    (b) is a bridge institution;

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    (c) is a subsidiary of another member institution; or

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    (d) has a subsidiary that is a member institution that is not new.

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  Marginal note:Exception — stage of intervention

  (4) A new member institution that has been assigned a stage of intervention must, unless it is also a member institution referred to in paragraph (3)(c) or (d), be classified in premium category 3.

• The following provision is not in force.

  Marginal note:Exception — bridge institution

  (5) A member institution that is a bridge institution must be classified in premium category 1.

• The following provision is not in force.

  Marginal note:Exception — subsidiary of member institution

  (6) A member institution that is a subsidiary of another member institution must be classified in the same premium category in which the member institution of which it is a subsidiary is classified, unless that member institution is new and the subsidiary member institution is not new.

• The following provision is not in force.

  Marginal note:Exception — amalgamation of new member institutions

  (7) A member institution that was formed by an amalgamation must, if all of its amalgamating member institutions would be new if they were still operating, be classified in

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    (a) premium category 2; or

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    (b) premium category 3, if the amalgamated member institution has been assigned a stage of intervention.

• The following provision is not in force.

  Marginal note:Exception — return not submitted

  (8) A member institution must be classified in premium category 5 if

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    (a) in the case of a January 15 classification, the member institution has not submitted before that date any fall return that it was required to submit in the previous calendar year; or

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    (b) in the case of a July 15 classification, the member institution has not submitted before July 3 any spring return that it was required to submit in that calendar year.

Marginal note:Calculation

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  4 (1) A member institution’s total score is equal to the sum of

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    (a) for the purpose of its classification as of January 15 of a calendar year,

    • (i) its fall quantitative score for the premium year that begins in that calendar year, as determined under subsection 7(1), (2) or (3), and

    • (ii) its fall qualitative score for the premium year that begins in that calendar year, as determined under section 10; or

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    (b) for the purpose of its classification as of July 15 of a calendar year,

    • (i) its spring quantitative score for the premium year that begins in that calendar year, as determined under subsection 7(1), (2) or (4), and

    • (ii) its spring qualitative score for the premium year that begins in that calendar year, as determined under section 10.

• The following provision is not in force.

  Marginal note:Exception — parent of not new subsidiary

  (2) Despite subsection (1), the total score for a member institution that started operating as a member institution during the premium year that ends in the calendar year in which the classification occurs, that was not formed by an amalgamation involving a member institution and that has at least one subsidiary that is a member institution that meets the following requirements is equal to the highest total score of any such subsidiary:

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    (a) the subsidiary is not new;

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    (b) the subsidiary was not, on the day before the day on which the member institution started to operate as a member institution, a subsidiary of another member institution; and

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    (c) the subsidiary is not, on the day on which the classification occurs, a subsidiary of another member institution.

Marginal note:Submission of documents

• The following provision is not in force.

  5 (1) Every member institution must submit to the Corporation

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    (a) not later than October 31 of each year, a return in the form required by the Corporation under subsection 22(1) of the Act, completed using data as of the end of the second quarter of the current financial year of the member institution and in accordance with the instructions that are, as of the day on which the return is submitted, set out in the Differential Premiums Manual, published by the Corporation and made available on its website;

  • The following provision is not in force.

    (b) not later than April 30 of each year, a return in the form required by the Corporation under subsection 22(1) of the Act, completed using data as of the end of the most recent financial year of the member institution that ended before that date and in accordance with the instructions that are, as of the day on which the return is submitted, set out in the Differential Premiums Manual, published by the Corporation and made available on its website;

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    (c) not later than April 30 of each year, the Basel III Capital Adequacy Reporting – Credit, Market and Operational Risk return, completed as of the end of the second and fourth quarters of the two preceding financial years of the member institution in accordance with the Capital Adequacy Requirements (CAR) – Guideline, issued by the Office of the Superintendent of Financial Institutions, as amended from time to time;

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    (d) not later than April 30 of each year, any of the following documents that the member institution was required to submit to the Superintendant, completed as of the end of the second and fourth quarters of the two preceding financial years of the member institution in accordance with the financial reporting instructions published by the Office of the Superintendent of Financial Institutions:

    • (i) the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI,

    • (ii) the Return of Allowances for Expected Credit Losses,

    • (iii) the Consolidated Monthly Balance Sheet,

    • (iv) Section III of the Mortgage Loans Report,

    • (v) the Non-Mortgage Loans Report (Quarterly),

    • (vi) the Pledging and REPOS Report,

    • (vii) the Deposit Liabilities Classified by Institutional Sector Report,

    • (viii) the Balance Sheet by Booking Location return,

    • (ix) the Net Stable Funding Ratio Reporting return, if the member institution is a domestic systemically important bank,

    • (x) the Liquidity Coverage Ratio (LCR) Reporting return, if the member institution is a domestic systemically important bank,

    • (xi) the Net Cumulative Cash Flow (NCCF) Return,

    • (xii) the Streamlined Net Cumulative Cash Flow (NCCF) Return,

    • (xiii) the Leverage Requirements Return, and

    • (xiv) the Operating Cash Flow Statement return; and

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    (e) not later than July 2 of each year, if the member institution becomes aware of an error or omission in its fall return or spring return or makes a change to a document submitted under paragraph (c) or (d),

    • (i) a revised fall return or spring return, or

    • (ii) a declaration identifying the error, omission or change and indicating that no modification to the member institution’s fall return or spring return is required as a result.

• The following provision is not in force.

  Marginal note:Exception

  (2) Subsection (1) does not apply to a member institution to which any of subsections 3(3) to (7) or 4(2) apply.

• The following provision is not in force.

  Marginal note:Financial information

  (3) The information provided by a member institution under subsection (1) must be

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    (a) consistent with audited financial statements prepared as of the end of the applicable financial year of the member institution; and

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    (b) based on consolidated financial information.

• The following provision is not in force.

  Marginal note:Adjustments

  (4) The Corporation may make any necessary adjustments to a fall return, spring return or any other document submitted under this section if it has not been completed as required under this section.