Canada Deposit Insurance Corporation

Canada Deposit Insurance Corporation

October 28, 2005 14:30 ET

CDIC's 2005 Annual Report to Parliament: Positive Changes for Consumers, Member Institutions

OTTAWA, ONTARIO--(CCNMatthews - Oct. 28, 2005) - The Canada Deposit Insurance Corporation (CDIC) released its 2005 annual report following its tabling in Parliament on September 21, 2005, highlighting a very positive year for Canadian depositors, for CDIC member institutions and for CDIC itself.

"Canadians' deposits with CDIC member institutions will be better protected than ever before," said Guy Saint-Pierre, CDIC's President and CEO, commenting on the federal government's decision to raise the limit on insured deposits with member institutions to $100,000 from $60,000.

Member institutions reported strong financial results. For their 2004 fiscal year their profits reached an historical high of $14.4 billion, with most members reporting excellent asset quality measures along with strong capital levels, as well as improved governance and risk management processes. For the ninth consecutive year there was not a single failure of a CDIC member institution.

Highlights of CDIC's annual report include:

- Premium rates for members - decreased by one third for 2005. The
premium rates that member institutions pay to CDIC according to
its system of differential premiums are, in 2005, at their lowest
levels ever. CDIC is funded by these premium revenues and does not
receive federal tax dollars.

- Reduction of regulatory burden on member institutions. CDIC
recommended its Standards of Sound Business and Financial Practices
be repealed in order to reduce the burden on its members as well
as to eliminate any unnecessary overlap of activity between CDIC
and the Office of the Superintendent of Financial Institutions.
In addition, new federal institutions taking retail deposits will
now automatically be members of CDIC.

- Positive results from Special Examination. CDIC underwent a
Special Examination by the Office of the Auditor General of Canada
as required by law. This report was a positive one; it neither
identified any deficiencies nor made any recommendations for

CDIC is a federal Crown corporation that provides deposit insurance against the loss of deposits with a member bank, trust or loan company and associations to which the Cooperative Credit Associations Act applies in the event of its failure. CDIC works to minimize its exposure to loss and contributes to the stability of the Canadian financial system for the benefit of depositors. Following the increase in the deposit insurance limit to $100,000, as at April 30, 2005, CDIC insured over $425 billion in deposits, in 81 member institutions. For more information, visit

Contact Information

  • CDIC
    Media Contact: Denise Robichaud
    Manager, Communications and Public Affairs
    (613) 995-6548