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

Marginal note:Assignment of scores

6 The Corporation must assign to a member institution that submits a fall return before January 15 of the calendar year after the calendar year in which it is due or a spring return before July 3 of the calendar in which it is due, for each factor set out in column 1 of Schedule 2, the score set out in column 3 that corresponds to the description set out in column 2 that, on the basis of the following information, applies to the member institution:

• (a) in the case of a fall return, the information that is provided in that return or in any revised fall return referred to in subparagraph 5(1)(e)(i) that it submits before January 15 of the calendar year after the calendar year in which the fall return is due; and

• (b) in the case of a spring return, the information that is provided in that return or in any revised spring return referred to in subparagraph 5(1)(e)(i).

Marginal note:Quantitative score

• 7 (1) A member institution’s fall quantitative score for a premium year is, subject to subsections (2) and (3), equal to the sum of the scores assigned to the member institution under paragraph 6(a) on the basis of the fall return that is due in the previous premium year or, if applicable, the revised fall return. Its spring quantitative score for a premium year is, subject to subsections (2) and (4), equal to the sum of the scores assigned to it under paragraph 6(b) on the basis of the spring return that is due in the previous premium year or, if applicable, the revised spring return.

• Marginal note:Exceptions

  (2) A member institution’s fall or spring quantitative score is equal to the corresponding sum referred to in subsection (1) multiplied by

  • (a) one and one fifth, if the member institution has operated as a member institution for less than five full financial years as of the day on which the return on which the score is based is due;

  • (b) one and one fifth, if the member institution was formed by an amalgamation involving two or more member institutions and has operated as a member institution for less than three full financial years as of the day on which the return on which the score is based is due;

  • (c) one and one eleventh, if the member institution has been operating as a member institution for at least five but less than six full financial years as of the day on which the return on which the score is based is due; or

  • (d) one and one eleventh, if the member institution was formed by an amalgamation involving two or more member institutions and has been operating as a member institution for at least three but less than four full financial years as of the day on which the return on which the score is based is due.

• Marginal note:Recently amalgamated institution — fall score

  (3) The fall quantitative score for a premium year of a member institution that was formed during the previous premium year by an amalgamation involving at least one member institution is equal to the highest fall quantitative score of any of its amalgamating institutions that are member institutions if

  • (a) the amalgamated institution has a financial year that ends on October 31; or

  • (b) the amalgamated institution has a financial year that ends on December 31 and the amalgamation occurred after June 30 of the previous premium year.

• Marginal note:Recently amalgamated institution — spring score

  (4) The spring quantitative score for a premium year of a member institution that was formed during the previous premium year by an amalgamation involving at least one member institution is equal to the highest spring quantitative score of any of its amalgamating institutions that are member institutions if the amalgamation occurred

  • (a) after October 31 of the previous premium year, in the case of an amalgamated institution with a financial year that ends on October 31; or

  • (b) after December 31 of the previous premium year, in the case of an amalgamated institution with a financial year that ends on December 31.

Qualitative Factors

Examiner’s Rating

Marginal note:Definition of examiner’s rating

• 8 (1) In this section, examiner’s rating means the rating on a scale of one to eight that is assigned to a member institution by one of the following in the course of carrying out their duties:

  • (a) in the case of a federal member institution, the Superintendent; and

  • (b) in the case of a provincial member institution

    • (i) the Corporation or a person designated under paragraph 28(a) of the Act, or

    • (ii) the government of a province, or an agent of the government of a province, with which the Corporation has entered into an agreement under section 38 of the Act.

• Marginal note:Assignment of score — January 15

  (2) On January 15 of each calendar year, the Corporation must — to each member institution that has a fall quantitative score determined in accordance with subsection 7(1) or (2) for the premium year that begins in that calendar year — assign

  • (a) the score set out in column 2 of Schedule 3 that corresponds to the most recent of whichever of the following examiner’s ratings set out in column 1 was available to the Corporation on November 1 of the previous calendar year:

    • (i) the most recent examiner’s rating assigned to the member institution during the period beginning on May 1 and ending on October 31 of the previous calendar year, and

    • (ii) the examiner’s rating that was used for the purpose of assigning a score under subsection (3) to the member institution on July 15 of the previous calendar year; or

  • (b) if none of the examiner’s ratings referred to in paragraph (a) was available to the Corporation on November 1 of the previous calendar year, a score equal to five twelfths of the member institution’s fall quantitative score.

• Marginal note:Exception — amalgamated institution

  (3) On January 15 of each calendar year, the Corporation must — to each member institution that has a fall quantitative score determined in accordance with subsection 7(3) for the premium year that begins in that calendar year — assign a score equal to the score assigned under subsection (2) to the amalgamating member institution whose fall quantitative score was used under subsection 7(3) to determine the member institution’s fall quantitative score for that premium year.

• Marginal note:Assignment of score — July 15

  (4) On July 15 of each premium year, the Corporation must — to each member institution that has a spring quantitative score determined in accordance with subsection 7(1) or (2) for that premium year — assign

  • (a) the score set out in column 2 of Schedule 3 that corresponds to the most recent of whichever of the following examiner’s ratings set out in column 1 was available to the Corporation on May 1 of that premium year:

    • (i) the most recent examiner’s rating that was assigned to the member institution in the previous premium year, and

    • (ii) the examiner’s rating that was used for the purpose of assigning a score to the member institution in the previous premium year under this subsection or subsection 28(2) of the Canada Deposit Insurance Corporation Differential Premiums By-law, as it read immediately before the day on which this By-law came into force; or

  • (b) if none of the examiner’s ratings referred to in paragraph (a) was available to the Corporation on May 1 of that premium year, a score equal to five twelfths of the member institution’s spring quantitative score.

• Marginal note:Exception — amalgamated institution

  (5) On July 15 of each premium year, the Corporation must — to each member institution that has a spring quantitative score determined in accordance with subsection 7(4) for that premium year — assign a score equal to the score assigned under subsection (4) to the amalgamating member institution whose spring quantitative score was used under subsection 7(4) to determine the member institution’s spring quantitative score for that premium year.

Risk and Resolvability Score

Marginal note:Definitions

• 9 (1) The following definitions apply in this section.

  materially non-compliant

  materially non-compliant has the meaning assigned by paragraph 11(4)(c) of the Canada Deposit Insurance Corporation Resolution Planning By-law. (sensiblement non conforme)

  partially non-compliant

  partially non-compliant has the meaning assigned by paragraph 11(4)(b) of the Canada Deposit Insurance Corporation Resolution Planning By-law. (partiellement non conforme)

  resolution plan

  resolution plan has the same meaning as in section 1 of the Canada Deposit Insurance Corporation Resolution Planning By-law. (plan de règlement)

• Marginal note:Domestic systemically important banks

  (2) The Corporation must, on January 15 of each calendar year on the basis of information available to the Corporation on November 1 of the previous calendar year and on July 15 of each calendar year on the basis of information available to the Corporation on May 1 of that calendar year, assign one of the following scores to each member institution that is a domestic systemically important bank if the member institution has, for the premium year that begins in that calendar year, a fall quantitative score under section 7 in the case of the January 15 assignment or a spring quantitative score under that section in the case of the July 15 assignment:

  • (a) 15, if the member institution is compliant with sections 2 to 4 of the Canada Deposit Insurance Corporation Data and System Requirements By-law, its resolution plan is compliant with the Canada Deposit Insurance Corporation Resolution Planning By-law and the member institution has not been notified that it is subject to enhanced monitoring by the Corporation;

  • (b) 8, if the member institution is compliant with sections 2 to 4 of the Canada Deposit Insurance Corporation Data and System Requirements By-law and

    • (i) its resolution plan is partially non-compliant and the member institution has not been notified that it is subject to enhanced monitoring by the Corporation, or

    • (ii) its resolution plan is compliant with the Canada Deposit Insurance Corporation Resolution Planning By-law and the member institution has been notified that it is subject to enhanced monitoring by the Corporation because information has come to the attention of the Corporation about financial or regulatory weaknesses or deficiencies of the member institution that, if left unaddressed, could lead to the failure of the member institution;

  • (c) 5, if

    • (i) the member institution is non-compliant with any of sections 2 to 4 of the Canada Deposit Insurance Corporation Data and System Requirements By-law, its resolution plan is compliant with the Canada Deposit Insurance Corporation Resolution Planning By-law and the member institution has not been notified that it is subject to enhanced monitoring by the Corporation, or

    • (ii) the member institution is compliant with sections 2 to 4 of the Canada Deposit Insurance Corporation Data and System Requirements By-law, its resolution plan is partially non-compliant and the member institution has been notified that it is subject to enhanced monitoring by the Corporation because information has come to the attention of the Corporation about financial or regulatory weaknesses or deficiencies of the member institution that, if left unaddressed, could lead to the failure of the member institution; or

  • (d) 0, if

    • (i) the member institution’s resolution plan is materially non-compliant,

    • (ii) the member institution is non-compliant with any of sections 2 to 4 of the Canada Deposit Insurance Corporation Data and System Requirements By-law and its resolution plan is partially non-compliant, or

    • (iii) the member institution has been notified that it is subject to enhanced monitoring by the Corporation because information has come to the attention of the Corporation about financial or regulatory weaknesses or deficiencies of the member institution that, if left unaddressed, are very likely to lead to the failure of the member institution.

• Marginal note:Other member institutions

  (3) The Corporation must, on January 15 of each calendar year on the basis of information available to the Corporation on November 1 of the previous calendar year and on July 15 of each calendar year on the basis of information available to the Corporation on May 1 of that calendar year, assign one of the following scores to each member institution that is not a domestic systemically important bank if the member institution has, for the premium year that begins in that calendar year, a fall quantitative score under section 7 in the case of the January 15 assignment or a spring quantitative score under that section in the case of the July 15 assignment:

  • (a) 15, if the member institution is compliant with sections 2 to 4 of the Canada Deposit Insurance Corporation Data and System Requirements By-law and has not been notified that it is subject to enhanced monitoring by the Corporation;

  • (b) 8, if the member institution is compliant with sections 2 to 4 of the Canada Deposit Insurance Corporation Data and System Requirements By-law and has been notified that it is subject to enhanced monitoring by the Corporation because information has come to the attention of the Corporation about financial or regulatory weaknesses or deficiencies of the member institution that, if left unaddressed, could lead to the failure of the member institution;

  • (c) 5, if the member institution is non-compliant with any of sections 2 to 4 of the Canada Deposit Insurance Corporation Data and System Requirements By-law and has not been notified that it is subject to enhanced monitoring by the Corporation; or

  • (d) 0, if

    • (i) the member institution is non-compliant with any of sections 2 to 4 the Canada Deposit Insurance Corporation Data and System Requirements By-law and has been notified that it is subject to enhanced monitoring by the Corporation because information has come to the attention of the Corporation about financial or regulatory weaknesses or deficiencies of the member institution that, if left unaddressed, could lead to the failure of the member institution, or

    • (ii) the member institution has been notified that it is subject to enhanced monitoring by the Corporation because information has come to the attention of the Corporation about financial or regulatory weaknesses or deficiencies of the member institution that, if left unaddressed, are very likely to lead to the failure of the member institution.

• Marginal note:Deemed compliance

  (4) For the purposes of subsections (2) and (3), a member institution that has been a member institution for 18 months or less on the November 1 or May 1 referred to in those subsections is deemed to be compliant on that date with sections 2 to 4 of the Canada Deposit Insurance Corporation Data and System Requirements By-law.

Qualitative Score

Marginal note:Calculation

10 A member institution’s fall qualitative score for a premium year is equal to the sum of the scores assigned to the member institution under subsection 8(2) or (3) and section 9 on January 15 of the calendar year in which that premium year begins. Its spring qualitative score for a premium year is equal to sum of the scores assigned to it under subsection 8(4) or (5) and section 9 on July 15 of that premium year.

Reclassification

Marginal note:Fall return after January 14

11 If a member institution submits a fall return after January 14 but not later than July 2 of the calendar year after the calendar year in which it was due or submits a revised fall return referred to in subparagraph 5(1)(e)(i) during that period

• (a) the Corporation must re-assign to the member institution the scores assigned on the basis of the information referred to in paragraph 6(a) and, if applicable, the score referred to in paragraph 8(2)(b) as if the return had been submitted on or before January 14;

• (b) the member institution’s fall quantitative and qualitative scores must be redetermined as if the updated scores referred to in paragraph (a) had been assigned on January 15;

• (c) the fall quantitative and qualitative scores of any other member institution that were dependent on the member institution’s scores must be redetermined on the basis of the updated scores; and

• (d) if any member institution’s total score under paragraph 4(1)(a) or subsection 4(2), when determined using the revised fall quantitative and qualitative scores, corresponds to a different premium category than the one in which it was originally classified as of January 15, that different premium category becomes the one in which the member institution is classified as of that date and the Corporation must notify the member institution of that premium category within 45 days after the day on which the late or revised return is submitted and, in any event, not later than July 15 of that calendar year.

Transitional Provisions, Amendments to this By-law, Consequential and Related Amendments, Repeal and Coming into Force

Transitional Provisions

Marginal note:Existing new member institution

12 The references to “premium category 2” in the following provisions are to be read, in relation to a member institution that became a member institution before the day on which this By-law comes into force, as “premium category 1”:

• (a) clause (iii)(A) of the description of C and clause (ii)(A) of the description of D in the formula in paragraph 2(1)(b);

• (b) subsection 3(3); and

• (c) paragraph 3(7)(a).