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

Full Document:

Regulations are current to 2013-05-26 and last amended on 2013-01-18. Previous Versions

SCHEDULE 3

PART 1

CAPITAL ADEQUACY

Range of Results
	Column 1	Column 2	Column 3	Column 4
Item	Assets to Capital Multiple	Tier 1 Risk-Based Capital Ratio	Total Risk-Based Capital Ratio	Score
1.	≤ the multiple authorized by the regulator	≥ 7%	≥ 10% if no total risk-based capital ratio is required by the regulator, or if that required ratio is equal to 8% or ≥ 125% of the total risk-based capital ratio required by the regulator, if that ratio is > 8%	20
2.	≤ the multiple authorized by the regulator	≥ 4% and < 7%	≥ 8% and < 10% if no total risk-based capital ratio is required by the regulator, or if that required ratio is equal to 8% or ≥ 100% and < 125% of the total risk-based capital ratio required by the regulator, if that ratio is > 8%	13
3.	> the multiple authorized by the regulator	< 4%	< 8% if no total risk-based capital ratio is required by the regulator, or if that required ratio is equal to 8% or < 100% of the total risk-based capital ratio required by the regulator, if that ratio is > 8%	0

PART 2

OTHER QUANTITATIVE FACTORS OR CRITERIA

	Column 1	Column 2	Column 3
Item	Factors or Criteria	Range of Results	Score
4.	Return on Risk-Weighted Assets	≥ 1.15	5
		≥ 0.75 and < 1.15	3
		< 0.75 (including negative results)	0
5.	Mean Adjusted Net Income Volatility	≥ 0 and ≤ 0.4	5
		> 0.4 and ≤ 1.0	3
		> 1.0	0
		if the result is negative or the mean net income or loss is zero	0
6.	Stress-tested Net Income
	(a) using 2.8 semi-deviations	≥ 0	5
	(b) using 1.4 and 2.8 semi-deviations	≥ 0 and < 0 respectively	3
	(c) using 1.4 semi-deviations	< 0	0
7.	Efficiency Ratio	≤ 65%	5
		> 65% and ≤ 85%	3
		> 85%	0
8.	Net Impaired Assets (Including Net Unrealized Losses on Securities) To Total Capital	< 20%	5
		≥ 20% and < 40%	3
		≥ 40%	0
9.	Three Year Moving Average Asset Growth	≤ 20% (including negative results)	5
		> 20% and ≤ 40%	3
		> 40%	0
10.	Aggregate Commercial Loan Concentration Ratio	< 150%	5
		≥ 150% and < 350%	3
		≥ 350%	0