OTTAWA, ONTARIO--(Marketwired - Sept. 12, 2016) - The Canada Deposit Insurance Corporation (CDIC) today launched a public consultation on the CDIC by-law that governs how its member financial institutions are required to inform Canadians about its deposit protection.
The Deposit Insurance Information By-law aims to increase depositor awareness about CDIC deposit protection to help them make informed financial decisions, and to ensure Canadians receive accurate and timely information where they conduct the majority of their banking activities. Informing depositors about CDIC protection helps Canadians feel confident about their savings, and improves the stability of our financial system.
Members are currently required to prominently display CDIC signage at their place of business, provide CDIC brochures in branches, and post a CDIC membership notice on their websites.
Proposed amendments aim to improve the clarity, usefulness, and timeliness of information provided by CDIC members to depositors through all banking platforms, including electronic banking.
"The past decade has seen significant advancements in banking technology, with a growing number of Canadians using the internet or a smart-phone as their primary method of banking," said CDIC President and CEO Michèle Bourque.
"Amendments to the by-law will ensure Canadians are provided with deposit insurance information when they need it, whether at the branch, online, or at an ATM. I look forward to the industry and public feedback that will guide our efforts to build up awareness of deposit insurance."
A copy of the consultation paper is available here. Comments are requested from member institutions, their associations, regulators, the general public, and other interested parties.
CDIC is a federal Crown corporation that contributes to the stability of the Canadian financial system by providing deposit insurance against the loss of eligible deposits at member institutions in the event of failure. CDIC protects approximately $700 billion of savings held by its member institutions which include banks, federally regulated credit unions as well as loan and trust companies and associations governed by the Cooperative Credit Associations Act that take deposits. CDIC is funded by premiums paid by member institutions and does not receive public funds to operate.