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

Regulations are current to 2019-05-22 and last amended on 2019-05-15. Previous Versions

Canada Deposit Insurance Corporation Differential Premiums By-law

SOR/99-120

CANADA DEPOSIT INSURANCE CORPORATION ACT

Registration 1999-03-10

Canada Deposit Insurance Corporation Differential Premiums By-law

The Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(g)Footnote a and section 21Footnote b of the Canada Deposit Insurance Corporation Act, hereby makes the annexed Canada Deposit Insurance Corporation Differential Premiums By-law.

March 3, 1999

The Minister of Finance, pursuant to subsection 21(3)Footnote a of the Canada Deposit Insurance Corporation Act, hereby approves the annexed Canada Deposit Insurance Corporation Differential Premiums By-law made by the Board of Directors of the Canada Deposit Insurance Corporation.

Ottawa, March 4, 1999

Interpretation

  •  (1) The definitions in this subsection apply in this By-law.

    Act

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

    CDIC standards

    CDIC standards[Repealed, SOR/2005-116, s. 1]

    Data Requirements By-law

    Data Requirements By-law means the Canada Deposit Insurance Corporation Data and System Requirements By-law. (Règlement administratif sur les exigences en matière de données)

    domestic systemically important bank

    domestic systemically important bank[Repealed, SOR/2019-43, s. 1]

    examiner

    examiner means

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

    • (b) in respect 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 the agent of the government of a province with whom the Corporation has entered into an agreement under section 38 of the Act. (inspecteur)

    filing year

    filing year means the calendar year in which a member institution is required to submit the documents referred to in section 15 for the purpose of determining the institution’s annual premium for the premium year beginning in that calendar year. (année de déclaration)

    Guidelines for Banks

    Guidelines for Banks means the Guidelines for Banks issued by the Superintendent under the Bank Act. (Lignes directrices à l’intention des banques)

    guidelines for member institutions

    guidelines for member institutions means the Guidelines for Banks or the Guidelines for Trust and Loan Companies, as applicable. (lignes directrices à l’intention des institutions membres)

    Guidelines for Trust and Loan Companies

    Guidelines for Trust and Loan Companies means the Guidelines for Trust and Loan Companies issued by the Superintendent under the Trust and Loan Companies Act. (Lignes directrices à l’intention des sociétés de fiducie et de prêt)

    new member institution

    new member institution[Repealed, SOR/2002-126, s. 1]

    regulator

    regulator means

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

    • (b) in respect of a provincial member institution, the authority whose mandate in respect of the institution under the provincial law governing the institution is comparable to that of the Superintendent in respect of federal member institutions. (organisme de réglementation)

    Reporting Form

    Reporting Form means the reporting form set out in Part 2 of Schedule 2. (formulaire de déclaration)

    Reporting Manual

    Reporting Manual means the Manual of Reporting Forms and Instructions for Deposit-Taking Institutions issued by the Superintendent under the Bank Act and the Trust and Loan Companies Act. (Recueil des formulaires et des instructions)

    subsidiary

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

  • (2) Unless otherwise provided in this By-law, terms and expressions used in this By-law have the same meaning as in the guidelines for member institutions or in the Reporting Manual.

  • (3) For the purpose of determining the annual premium of a member institution for a premium year, a reference in this By-law to the guidelines for member institutions or the Reporting Manual is a reference to those guidelines or that Reporting Manual as amended up to and including October 31 preceding that premium year.

  • (4) For the purposes of sections 15 and 16 and Schedule 2, a reference, in respect of an amalgamating member institution, to the fiscal year ending in the year preceding the filing year means a reference to the period covered by its audited financial statements prepared as of the day preceding the date of its amalgamation where

    • (a) that institution does not have a fiscal year ending in the year preceding the filing year; and

    • (b) that amalgamation occurred after April 30 of the year preceding the filing year and on or before April 30 of the filing year.

  • (5) A reference in Schedule 2 or Schedule 3 to a multiple or ratio authorized or required in respect of a member institution by its regulator means a multiple or ratio authorized or required by that regulator in the course of the regulator’s duties.

  • (6) [Repealed, SOR/2006-47, s. 1]

  • SOR/2001-299, s. 37
  • SOR/2002-126, s. 1
  • SOR/2005-48, s. 1
  • SOR/2005-116, s. 1
  • SOR/2006-47, s. 1
  • SOR/2009-12, s. 1
  • SOR/2010-307, s. 1
  • SOR/2015-75, ss. 1, 26(F)
  • SOR/2019-43, s. 1

Application

  •  (1) Section 3 applies, for the purpose of subsection 23(1) of the Act, in respect of the calculation of the premium payable by a member institution referred to in that subsection.

  • (2) Sections 4 to 30 apply in respect of the calculation of the annual premium payable by a member institution for a full premium year.

  • SOR/2005-48, s. 2(E)

Annual Premium

 For the purpose of paragraph 23(1)(a) of the Act, the annual premium for a member institution referred to in subsection 23(1) is equal to the greater of

  • (a) $5,000, and

  • (b) the result determined in accordance with the formula

    A × B × C

    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 subparagraph 23(1)(b)(ii) of the Act,
    B
    is an amount equal to the sum of the deposits referred to in paragraph 23(1)(b)(ii) of the Act, and
    C
    is the percentage set out in column 3 of Schedule 1 for the applicable premium year for premium category 1.
  • SOR/2015-75, s. 2
  •  (1) For the purpose of paragraph 21(1)(a) of the Act, the annual premium for each member institution is equal to the greater of

    • (a) $5,000, and

    • (b) subject to subsections (1.1) and (2), the result determined in accordance with the formula

      A × B × C

      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 referred to in paragraph 21(4)(b) of the Act, and
      C
      is the percentage set out for the applicable premium year in column 3 of an item of Schedule 1 that corresponds to the premium category of the member institution set out in column 1 of that item.
  • (1.1) If a member institution is reclassified under subsection 5(2), the following formula shall be used to determine the result for the purposes of paragraph (1)(b):

    (D × (E ÷ H)) + (F × (G ÷ H))

    where

    D
    is the amount that would be the result under paragraph (1)(b) if C in that paragraph represented the percentage set out in column 3 of an item of Schedule 1 for the premium category, set out in column 1 of the item, in which the member institution was classified before its reclassification;
    E
    is the number of days during the period beginning on May 1 of the filing year and ending on the day before the day on which the member institution has been a member institution for 18 months;
    H
    is the number of days during the period beginning on May 1 of the filing year and ending on April 30 of the following year;
    F
    is the amount that would be the result under paragraph (1)(b) if C in that paragraph were the percentage set out in column 3 of an item of Schedule 1 for the premium category, set out in column 1 of that item, in which the member institution is reclassified; and
    G
    is the number of days during the period beginning on the day on which the member institution has been a member institution for 18 months and ending on April 30 of the year following the filing year referred to in E.
  • (2) If a member institution is reclassified under section 6, the following formula shall be used to determine the result for the purposes of paragraph (1)(b):

    (D × (E ÷ H)) + (F × (G ÷ H))

    where

    D
    is the amount that would be the result under paragraph (1)(b) if C in that paragraph represented the percentage set out in column 3 of item 4 of Schedule 1;
    E
    is the number of days during the period beginning on May 1 of the filing year and ending on the day on which the Corporation receives the declaration referred to in paragraph 7(1)(b) or the documents required by subsection 15(1) or section 16 from the member institution;
    H
    is the number of days during the period beginning on May 1 of the filing year and ending on April 30 of the following year;
    F
    is the amount that would be the result under paragraph (1)(b) if C in that paragraph were the percentage set out in column 3 of an item of Schedule 1 for the premium category, set out in column 1 of that item, in which the member institution is reclassified; and
    G
    is the number of days during the period beginning on the day after the day on which the Corporation receives the declaration referred to in paragraph 7(1)(b) or the documents required by subsection 15(1) or section 16 from the member institution and ending on April 30 of the year following the filing year referred to in E.
  • SOR/2000-38, s. 1
  • SOR/2002-126, s. 2
  • SOR/2015-75, s. 3
  • SOR/2019-43, s. 2

 For each premium year that begins after April 30, 2021, the reference to “A × B × C” in paragraph 4(1)(b) shall, in respect of a member institution that is required to develop and maintain a resolution plan under section 39.01 of the Act, be read as

  • (a) “(A × B × C) + (B × 0.0125%)” if the resolution plan was partially non-compliant, within the meaning of paragraph 11(4)(b) of the Canada Deposit Insurance Corporation Resolution Planning By-law, as of April 30 of the preceding premium year;

  • (b) “(A × B × C) + (B × 0.025%)” if the resolution plan was materially non-compliant, within the meaning of paragraph 11(4)(c) of that By-law, as of April 30 of the preceding premium year;

  • (c) “(A × B × C) + (B × 0.05%)” if the resolution plan was materially non-compliant, within the meaning of paragraph 11(4)(c) of that By-law, as of April 30 of each of the two preceding premium years; or

  • (d) “(A × B × C) + (B × 0.1%)” if the resolution plan was materially non-compliant, within the meaning of paragraph 11(4)(c) of that By-law, as of April 30 of each of the three preceding premium years.

  • SOR/2019-139, s. 1

Determination of Premium Category

Classification

  •  (1) The Corporation shall, before July 15 of each premium year, classify every member institution in accordance with sections 7, 8, 8.1 and 12.

  • (2) If an institution has been a member institution for a period of between 6 and 18 months on the day on which it is classified under subsection (1), the Corporation may review its classification and reclassify it in accordance with subsection 8.1(4) once the institution has been a member institution for at least 18 months.

  • SOR/2019-43, s. 3
  •  (1) The Corporation shall review the classification of every member institution that has been classified in premium category 4 in accordance with section 12 if the institution submits to the Corporation on or before April 30 of the year following the filing year

    • (a) if the institution is an institution described in paragraph 12(1)(a), audited financial statements and a revised Reporting Form or a declaration that the audited financial statements confirm the information set out in the Reporting Form and no modifications are required to be made to the Reporting Form or to the returns and documents referred to in paragraphs 15(1)(c) and (e) as previously submitted; and

    • (b) if the institution is an institution described in paragraph 12(1)(b), the declaration referred to in paragraph 7(1)(b) or the documents required by paragraphs 15(1)(a) to (c) and (e) or section 16.

  • (2) The Corporation shall reclassify in accordance with sections 7, 8 or 8.1, as the case may be, a member institution referred to in subsection (1) if, based on the documents referred to in that subsection, such a reclassification is warranted.

  • SOR/2000-38, s. 2(F)
  • SOR/2002-126, s. 3
  • SOR/2015-75, s. 4
  • SOR/2019-43, s. 4

New Member Institutions

  •  (1) A member institution shall be classified, subject to sections 8.1 and 12, in premium category 1, if

    • (a) the member institution has been operating as a member institution for less than two fiscal years consisting of at least 12 months each, determined as of the end of the fiscal year ending in the year preceding the filing year; and

    • (b) not later than April 30 of the filing year, the member institution provides the Corporation with a declaration confirming that the member institution meets the condition referred to in paragraph (a).

  • (2) Subsection (1) does not apply to a member institution that

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

    • (b) has a subsidiary that is a member institution that has been operating for at least two fiscal years consisting of at least 12 months each, determined as of the end of the subsidiary’s fiscal year ending in the year preceding the filing year.

  • (2.1) A member institution that is a bridge institution shall be classified in premium category 1.

  • (3) For the purpose of this section, if a member institution is formed by an amalgamation involving one or more member institutions, the amalgamated member institution shall be considered to have started operating on the same day as the amalgamating member institution that has been operating for the longest period of time.

  • (4) [Repealed, SOR/2019-43, s. 5]

  • SOR/2002-126, s. 4
  • SOR/2010-4, s. 1
  • SOR/2010-307, s. 3
  • SOR/2019-43, s. 5

Evaluation

 A member institution to which sections 7 and 8.01 do not apply shall be classified, subject to sections 8.1 and 12, in the premium category set out in column 1 of Schedule 1 that corresponds to the total score for the institution determined in accordance with section 9, 10 or 11, as the case may be, and set out in column 2.

  • SOR/2002-126, s. 4
  • SOR/2019-43, s. 6

 A member institution that is a subsidiary of another member institution shall be classified, subject to sections 8.1 and 12,

  • (a) if it is a subsidiary of a member institution classified under subsection 7(1),

    • (i) in the same premium category in which the member institution of which it is a subsidiary would have been classified if sections 8.1 and 12 did not apply, or

    • (ii) if the subsidiary has been operating as a member institution for at least two fiscal years consisting of at least 12 months each, determined as of the end of the subsidiary’s fiscal year ending in the year preceding the filing year, in the premium category set out in column 1 of Schedule 1 that corresponds to the total score for the subsidiary determined in accordance with section 9 or 11, as the case may be, and set out in column 2; or

  • (b) in any other case, in the same premium category in which the member institution of which it is a subsidiary would have been classified if sections 8.1 and 12 did not apply.

  • SOR/2019-43, s. 6
  •  (1) A member institution, other than one classified in accordance with section 7 or subparagraph 8.01(a)(i), that was not in all material respects compliant with the Data Requirements By-law as of April 30 of the preceding premium year shall

    • (a) if it would otherwise be classified in premium category 1 for the premium year in question, be classified in premium category 2;

    • (b) if it would otherwise be classified in premium category 2 for the premium year in question, be classified in premium category 3; and

    • (c) if it would otherwise be classified in premium category 3 or 4 for the premium year in question, be classified in premium category 4.

  • (2) A member institution, other than one classified in accordance with section 7 or subparagraph 8.01(a)(i), that was not in all material respects compliant with the Data Requirements By-law as of April 30 of each of the two preceding premium years shall

    • (a) if it would otherwise be classified in premium category 1 for the premium year in question, be classified in premium category 3; and

    • (b) if it would otherwise be classified in premium category 2, 3 or 4 for the premium year in question, be classified in premium category 4.

  • (3) A member institution, other than one classified in accordance with section 7 or subparagraph 8.01(a)(i), that was not in all material respects compliant with the Data Requirements By-law as of April 30 of each of the three preceding premium years shall be classified in premium category 4.

  • (4) A member institution that would otherwise be classified in accordance with section 7 or subparagraph 8.01(a)(i), that has been a member institution for at least 18 months and that is not in all material respects compliant with the Data Requirements By-law shall

    • (a) if it would otherwise be classified in premium category 1 for the premium year in question, be classified in premium category 2;

    • (b) if it would otherwise be classified in premium category 2 for the premium year in question, be classified in premium category 3; and

    • (c) if it would otherwise be classified in premium category 3 or 4 for the premium year in question, be classified in premium category 4.

  • SOR/2010-307, s. 4
  • SOR/2017-22, s. 1
  • SOR/2018-8, s. 1
  • SOR/2019-43, s. 7

 [Repealed, SOR/2017-22, s. 2]

 In order to determine the total score of a member institution, other than a member institution referred to in section 10 or subsection 11(1), the Corporation shall add together the institution’s scores for quantitative factors assigned under sections 20 to 27 and qualitative factors and criteria assigned under sections 28 and 30.

  • SOR/2006-47, s. 2

 Subject to subsection 11(4), if a member institution that started operating as a member institution after April 30 of the year preceding the filing year would be classified in premium category 1 in accordance with section 7 if it did not have any subsidiaries of the type described in paragraph 7(2)(b), the Corporation shall assign to that institution the highest of the total scores assigned to each of its subsidiaries that

  • (a) on the day preceding the day that the institution started to operate as a member institution was not a subsidiary of another member institution; and

  • (b) is not a subsidiary of another member institution.

  • SOR/2002-126, s. 5
  • SOR/2019-43, s. 8
  •  (1) In order to determine the total score of a member institution formed by an amalgamation involving one or more member institutions that occurred after April 30 of the year preceding the filing year and on or before April 30 of the filing year, the Corporation shall add together the score assigned to the amalgamated member institution in respect of quantitative factors under subsection (2) and the score assigned to that institution in respect of qualitative factors and criteria under subsection (3).

  • (2) The following score shall be assigned to an amalgamated member institution referred to in subsection (1) in respect of quantitative factors:

    • (a) where the amalgamated member institution has a fiscal year ending in the year preceding the filing year, the sum of the scores assigned to that institution under sections 20 to 27; and

    • (b) where the amalgamated member institution does not have a fiscal year ending in the year preceding the filing year,

      • (i) if only one of the amalgamating institutions is a member institution, the sum of the scores assigned to that member institution under sections 20 to 27, and

      • (ii) if two or more of the amalgamating institutions are member institutions, the highest of the sums of the scores assigned to each of those amalgamating member institutions under sections 20 to 27.

  • (3) The score assigned to an amalgamated member institution referred to in subsection (1) in respect of qualitative factors and criteria shall consist of the sum of

    • (a) the score assigned to it under section 28 or, if no score can be assigned to it under that section, the score that would have been assigned under section 28 to the amalgamating member institution whose score in respect of quantitative factors was used to determine the score of the amalgamated member institution in respect of those factors for the purpose of subsection (2), if that section applied to that amalgamating member institution, and

    • (b) [Repealed, SOR/2006-47, s. 3]

    • (c) the score assigned to the amalgamated member institution under section 30.

  • (4) Where section 10 and this section both apply in respect of a member institution, this section shall prevail.

  • SOR/2006-47, s. 3
  •  (1) A member institution shall be classified in premium category 4 if it

    • (a) has submitted a Reporting Form in accordance with paragraph 15(4)(a) or 16(2)(a), as the case may be, but has not, before July 1 of the filing year, submitted audited financial statements and a revised Reporting Form or a declaration that the audited financial statements confirm the information set out in the Reporting Form and no modifications are required to be made to the Reporting Form or to the returns and documents referred to in paragraphs 15(1)(c) and (e), as previously submitted; or

    • (b) has not, by April 30 of the filing year, submitted the declaration referred to in paragraph 7(1)(b) or the documents required by paragraphs 15(1)(a) to (c) and (e) or section 16.

  • (2) [Repealed, SOR/2019-43, s. 9]

  • (3) Subsection (1) does not apply to a member institution referred to in subsection 7(2.1).

  • SOR/2002-126, s. 6
  • SOR/2010-4, s. 2
  • SOR/2015-75, s. 5
  • SOR/2017-22, s. 3
  • SOR/2019-43, s. 9

 [Repealed, SOR/2002-126, s. 7]

Notification

  •  (1) The Corporation shall, not later than July 15 of each premium year, notify every member institution of the premium category in which it has been classified under this By-law for that premium year.

  • (2) If the Corporation reviews the classification of a member institution based on information in respect of the institution that has come to its attention, including new or supplementary information submitted by the institution, and, as a result of that review, classifies the institution in a different premium category, the Corporation shall as soon as feasible notify the institution of that change.

  • (3) [Repealed, SOR/2015-75, s. 6]

  • SOR/2010-307, s. 5
  • SOR/2015-75, s. 6

Filing of Quantitative Information

  •  (1) Subject to section 17, every member institution shall submit to the Corporation, not later than April 30 of every year,

    • (a) the Reporting Form, completed in accordance with the instructions set out in the Form;

    • (b) a list of its subsidiaries that are member institutions;

    • (c) the Basel III Capital Adequacy Reporting – Credit, Market and Operational Risk return, set out on the website of the Office of the Superintendent of Financial Institutions, completed in accordance with the guidelines for member institutions, as of the end of each of its two preceding fiscal years, that is, as of the end of the fiscal year ending in the year preceding the filing year and the end of the fiscal year ending in the second year preceding the filing year, unless the return has been previously submitted to the Corporation;

    • (d) [Repealed, SOR/2015-75, s. 7]

    • (e) the following documents set out in the Reporting Manual, namely,

      • (i) the Consolidated Statement of Income, Retained Earnings and AOCI, completed in accordance with that Manual, for its preceding fiscal year,

      • (ii) the Return of Impaired Assets, completed in accordance with that Manual as of the end of its preceding fiscal year,

      • (iii) the Consolidated Monthly Balance Sheet, completed in accordance with that Manual as of the end of its preceding fiscal year,

      • (iv) Section III of the Mortgage Loans Report, completed in accordance with that Manual as of the end of its preceding fiscal year, and

      • (v) the Non-Mortgage Loans Report, completed in accordance with that Manual as of the end of its preceding fiscal year, and

      • (vi) [Repealed, SOR/2018-8, s. 2]

    • (f) the audited financial statements on which the information provided in the Reporting Form and the returns and documents referred to in paragraphs (c) and (e) are based, unless those financial statements have been submitted to the Corporation under the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law.

  • (1.1) Every member institution that is a domestic systemically important bank shall submit to the Corporation, not later than April 30 of every year, the Pledging and REPOS Report, completed in accordance with the Reporting Manual as of the end of its preceding fiscal year.

  • (2) The information provided by a member institution in the Reporting Form and in the returns and documents referred to in paragraphs (1)(c) and (e) must

    • (a) be based on audited financial statements prepared as of the end of the applicable fiscal year;

    • (b) be consistent with the financial statements referred to in paragraph (a); and

    • (c) be based on consolidated financial information as of the end of the applicable fiscal year.

  • (3) Unless otherwise provided in this By-law, financial information that is provided under this By-law shall be prepared in accordance with the International Financial Reporting Standards established by the International Accounting Standards Board, the primary source of which is, in Canada, the CPA Canada Handbook – Accounting.

  • (4) If the audited financial statements referred to in paragraph (1)(f) have not been issued by April 30 of the filing year, the member institution shall

    • (a) complete the Reporting Form and the returns and documents referred to in paragraphs (1)(c) and (e) based on its unaudited financial statements and submit them to the Corporation within the time required by subsection (1); and

    • (b) not later than July first of the filing year, submit to the Corporation its audited financial statements and

      • (i) provide the Corporation with a declaration that the audited financial statements confirm the information that was previously provided and that no modifications are required to be made to the Reporting Form or to the returns and documents referred to in paragraphs (1)(c) and (e) as previously submitted, or

      • (ii) submit a revised Reporting Form and the returns and documents referred to in paragraphs (1)(c) and (e) in revised form if they have been revised to conform with the audited financial statements.

  • SOR/2005-48, s. 3
  • SOR/2007-26, s. 1
  • SOR/2009-12, s. 2
  • SOR/2010-4, s. 3
  • SOR/2015-75, ss. 7, 26(F)
  • SOR/2018-8, s. 2
  •  (1) Notwithstanding section 15 and subject to section 18, a member institution that has been formed by an amalgamation involving one or more member institutions that occurred after April 30 of the year preceding the filing year and on or before April 30 of the filing year and that does not have a fiscal year ending in the year preceding the filing year shall submit to the Corporation not later than April 30 of the filing year a list of its subsidiaries that are member institutions and

    • (a) for each amalgamating member institution that has a fiscal year ending in the year preceding the filing year, the documents referred to in subsection 15(1) other than the list referred to in paragraph 15(1)(b); and

    • (b) for each amalgamating member institution that does not have a fiscal year ending in the year preceding the filing year

      • (i) its audited financial statements prepared as of the day preceding the date of amalgamation, and

      • (ii) the Reporting Form and the returns referred to in paragraph 15(1)(c) and the documents referred to in paragraph 15(1)(e), which returns and documents must consist of information that is based on and consistent with the audited financial statements referred to in subparagraph (i), and must be based on consolidated financial information as of the day preceding the date of amalgamation.

  • (2) If an amalgamating member institution referred to in subsection (1) has not issued audited financial statements by April 30 of the filing year, the amalgamated member institution shall submit to the Corporation for that amalgamating member institution

    • (a) within the time required by subsection (1), the Reporting Form and the returns and documents required to be submitted by that subsection, which returns and documents must consist of information that is based on that institution’s unaudited financial statements; and

    • (b) not later than July first of the filing year, that institution’s audited financial statements and

      • (i) provide the Corporation with a declaration that the audited financial statements confirm the information that was previously provided and that no modifications are required to be made to the Reporting Form or to the returns and documents referred to in paragraphs 15(1)(c) and (e) as previously submitted, or

      • (ii) submit a revised Reporting Form and the returns and documents referred to in paragraphs 15(1)(c) and (e) in revised form if they have been revised to conform with the audited financial statements.

  • SOR/2015-75, ss. 8, 26(F)

 Section 15 does not apply to a member institution

  • (a) that is a member institution classified in accordance with subsection 7(1) or (2.1);

  • (b) that is a subsidiary of another member institution, unless it is a subsidiary described in paragraphs 10(a) and (b) and a total score is assigned to that other member institution in accordance with section 10; or

  • (c) to which a total score is assigned in accordance with section 10.

  • SOR/2005-48, s. 4
  • SOR/2010-4, s. 4
  • SOR/2010-307, s. 6
  • SOR/2015-75, s. 9

 Section 16 does not apply to a member institution that

  • (a) is a member institution classified in accordance with subsection 7(1) or (2.1); or

  • (b) is a subsidiary of another member institution.

  • SOR/2005-48, s. 5
  • SOR/2010-4, s. 5

Records

  •  (1) Every member institution shall prepare and maintain records that accurately and fully describe and disclose the information on which the information provided in the Reporting Form is based.

  • (2) Every member institution shall retain the records referred to in subsection (1) in Canada for a period of at least six years after they are prepared.

  • (3) Where a member institution amalgamates with, or acquires all or substantially all of the assets of, one or more other member institutions, the institution that results from the amalgamation or acquisition shall retain the records of those other member institutions for a period of at least six years following the date of the amalgamation or acquisition.

Quantitative Factors

  •  (1) The Corporation shall review the Reporting Form and other documents submitted by a member institution under section 15 or 16, and shall, where the Reporting Form and other documents have not been completed in accordance with this By-law, make whatever adjustments are necessary.

  • (2) The Corporation shall, in accordance with sections 21 to 27, assign to each member institution the scores that correspond to the results set out in the Reporting Form, reviewed and, if applicable, adjusted in accordance with subsection (1).

 The Corporation shall assign to the member institution a score in respect of its capital adequacy that is equal to the sum of its scores for elements 1.2 and 1.4 of item 1 of the Reporting Form. To determine its scores for those elements, the Corporation shall compare the results obtained for the member institution in respect of its capital adequacy under elements 1.2 and 1.4 of that item with the range of results set out in Part 1 of Schedule 3.

  • SOR/2015-75, s. 10

 The Corporation shall compare the result obtained for a member institution in respect of the factor in item 2 of the Reporting Form with the range of results set out for that factor in column 2 of item 4 of Part 2 of Schedule 3 and shall assign to the institution the score set out in column 3 of that item that corresponds to that institution’s result.

  •  (1) Subject to section 27, the Corporation shall compare the results obtained for a member institution in respect of each of the factors in items 3 and 4 of the Reporting Form with the range of results set out for those factors in items 5 and 6, respectively, in column 2 of Part 2 of Schedule 3 and shall assign to the institution the scores set out in column 3 of each of those items that correspond to that institution’s results, respectively.

  • (2) For the purpose of subsection (1), if an amalgamated member institution formed by an amalgamation involving only one member institution has been operating as a member institution for less than three fiscal years consisting of at least 12 months each, the scores assigned to the amalgamated member institution shall be based on the results obtained for the institution using the financial information

    • (a) of the amalgamated member institution for the fiscal years during which it has been operating as a member institution; and

    • (b) of the amalgamating member institution for the other applicable fiscal years.

  • SOR/2005-48, s. 6(E)

 The Corporation shall compare the results obtained for a member institution in respect of each of the factors in items 5 and 6 of the Reporting Form with the range of results set out for those factors in column 2 of items 7 and 8, respectively, of Part 2 of Schedule 3 and shall assign to the institution the scores set out in column 3 of each of those items that correspond to that institution’s results, respectively.

  • SOR/2005-48, s. 7
  •  (1) Subject to section 27, the Corporation shall compare the result obtained for a member institution in respect of the factor in item 7 of the Reporting Form with the range of results set out for that factor in column 2 of item 9 of Part 2 of Schedule 3 and shall assign to the institution the score set out in column 3 of that item that corresponds to that institution’s result.

  • (2) For the purpose of subsection (1), if an amalgamated member institution formed by an amalgamation involving only one member institution has been operating as a member institution for less than four fiscal years consisting of at least 12 months each, the score assigned to the amalgamated member institution shall be based on the result obtained for the institution using the financial information

    • (a) of the amalgamated member institution for the fiscal years during which it has been operating as a member institution; and

    • (b) of the amalgamating member institution for the other applicable fiscal years.

  • SOR/2005-48, s. 7

 The Corporation shall assign the score for the factor in item 8 of the Reporting Form to a member institution that is not a domestic systemically important bank as follows:

  • (a) if the result of the threshold formula in item 8 of the Reporting Form is less than 10 per cent, the score to be assigned is 5; and

  • (b) if the result of the threshold formula in item 8 of the Reporting Form is equal to or greater than 10 per cent, the score to be assigned is the lowest of the scores set out for a type of mortgage loan in column “E” of an item of Table 8 to item 8 of the Reporting Form.

  • SOR/2015-75, s. 11

 The Corporation shall assign the score for the factor in item 8-1 of the Reporting Form to a member institution that is a domestic systemically important bank as follows:

  • (a) if the result of the threshold formula in element 8-1.1 of the Reporting Form is equal to or less than 100 per cent, the score to be assigned is 5; and

  • (b) if the result of the threshold formula in element 8-1.1 of the Reporting Form is greater than 100 per cent, the score to be assigned is

    • (i) 3, if the result of the formula in element 8-1.2 is less than 50 per cent; and

    • (ii) 0, if the result of the formula in element 8-1.2 is equal to or greater than 50 per cent.

  • SOR/2015-75, s. 12
  • SOR/2016-11, s. 1

 The Corporation shall assign the score to a member institution for the factor in item 9 of the Reporting Form as follows:

  • (a) if the result of the threshold formula in item 8 of the Reporting Form is greater than 90 per cent, the score to be assigned is 5; and

  • (b) if the result of the threshold formula in item 8 of the Reporting Form is equal to or less than 90%, the Corporation shall compare the results obtained for the member institution in respect of that factor with the range of results set out for that factor in column 2 of item 12 of Part 2 of Schedule 3 and shall assign to the institution the score set out in column 3 of that item that corresponds to that institution’s results, respectively.

  • SOR/2018-8, s. 3
  •  (1) If a member institution has been operating as a member institution for less than five fiscal years consisting of at least 12 months each, the combined score in respect of the factors in items 3, 4 and 7 of the Reporting Form shall be determined in accordance with the formula

    (A ÷ 45) × 15

    where

    A
    is the sum of the scores assigned to the member institution under sections 21, 22, 24, 25 and 26.
  • (2) If an amalgamated member institution formed by an amalgamation involving two or more member institutions has been operating as a member institution for less than three fiscal years consisting of a least 12 months each, the combined score in respect of the factors in items 3, 4 and 7 of the Reporting Form shall be determined in accordance with subsection (1).

  • (3) If a member institution has been operating as a member institution for five fiscal years consisting of at least 12 months each, the score in respect of the factors in item 7 of the Reporting Form shall be determined in accordance with the formula

    (A ÷ 55) × 5

    where

    A
    is the sum of the scores assigned to the member institution under sections 21, 22, 23, 24, 25 and 26.
  • (4) If an amalgamated member institution formed by an amalgamation involving two or more member institutions has been operating as a member institution for three fiscal years consisting of at least 12 months each, the score in respect of the factors in item 7 of the Reporting form shall be determined in accordance with subsection (3).

  • SOR/2002-126, s. 8
  • SOR/2005-48, s. 8

Qualitative Factors and Criteria

Examiner’s Rating

  •  (1) For the purposes of this section, examiner’s rating in respect of a member institution means the rating on a scale of one to five that is assigned to the institution by the examiner in the course of carrying out the examiner’s duties.

  • (2) Subject to subsection (3), the Corporation shall assign to each member institution the score set out in column 2 of an item of Schedule 4 that corresponds to the examiner’s rating for the institution set out in column 1 of that item, which rating is the most recent of the following ratings that is available to the Corporation, namely,

    • (a) the examiner’s rating as of April 30 of the filing year;

    • (b) the most recent examiner’s rating assigned to the institution during the period beginning on May 1 of the year preceding the filing year and ending on April 29 of the filing year; and

    • (c) the examiner’s rating used for the evaluation of the member institution for the preceding premium year.

  • (3) If none of the examiner’s ratings referred to in subsection (2) is available to the Corporation for the member institution, the score to be assigned to the institution for the qualitative factor under this section shall be the result determined in accordance with the formula

    (A ÷ 65) × 35

    where

    A
    is the sum of the scores assigned to the member institution under sections 21 to 27 and 30.
  • SOR/2004-57, s. 1
  • SOR/2006-47, s. 4
  • SOR/2007-26, s. 2(E)

 [Repealed, SOR/2006-47, s. 5]

 [Repealed, SOR/2005-116, s. 2]

Other Information

  •  (1) In this section, supervisory authority means an examiner, a regulator, any foreign authority that monitors the activities of financial institutions and a securities commission, a stock exchange or any other similar authority.

  • (2) The Corporation shall, based on information about the safety, soundness, financial condition and viability of each member institution, including such information that is produced by supervisory authorities, rating agencies, industry analysts or other experts, that has come to the attention of the Corporation, including information about the affiliates of the member institution, assign to the institution a score of

    • (a) 5 if, as of April 30 of the filing year, no information has come to its attention about circumstances that represent a threat to or compromise the safety, soundness, financial condition or viability of the institution;

    • (b) 3 if, as of April 30 of the filing year, information has come to its attention about circumstances that represent a threat to the safety, soundness, financial condition or viability of the institution; and

    • (c) 0 if, as of April 30 of the filing year, information has come to its attention about circumstances that compromise the safety, soundness, financial condition or viability of the institution.

Coming into Force

 This By-law comes into force on March 31, 1999.

SCHEDULE 1(Paragraphs 3(b) and 4(1)(b), subsections 4(1.1) and (2), section 8 and subparagraph 8.01(a)(ii))

Premium Categories

ItemColumn 1Column 2Column 3
Premium CategoryTotal ScorePercentage
Premium Years Beginning in or After 2018
11≥ 8022.5%
22≥ 65 and < 8045%
33≥ 50 and < 6590%
44< 50100%
  • SOR/2015-75, s. 13
  • SOR/2017-22, s. 4
  • SOR/2018-8, s. 4
  • SOR/2019-43, s. 10

SCHEDULE 2(Sections 1, 6, 12, 15, 16 and 20 to 27)

PART 1Interpretation

  • 1
    • (1) The following definitions apply in this Schedule:

      Guidelines

      Guidelines means

      • (a) in the case of a bank or a federal credit union, the Guidelines for Banks; and

      • (b) in the case of any other member institution, the Guidelines for Trust and Loan Companies. (Lignes directrices)

      regulated deposit-taking institution

      regulated deposit-taking institution means an entity that is supervised or regulated by a Canadian or foreign financial services or banking regulator and is authorized to accept deposits from the public. (institution de dépôt réglementée)

    • (2) For the purposes of item 7 of the Reporting Form, the value of assets acquired by a member institution, as a result of a merger or an acquisition described in that item, is the value of the assets on the date of their acquisition as reported in the consolidated financial statements of the member institution.

PART 2Reporting Form

1 CAPITAL ADEQUACY MEASURES
1.1 Leverage Ratio (%)
Formula:

(Tier 1 Capital) ÷ (Total Exposures) × 100

Complete the following:

(1.1.1 — — — —) ÷ (1.1.2 — — — —) × 100 = 1.1 blank line%

Elements

Use the instructions below to arrive at the elements of the formula.

Refer to the Leverage Requirements Return (LRR), Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

1.1.1 Tier 1 Capital

Indicate the Tier 1 Capital as set out in Section 1 – Leverage Ratio Calculation of the LRR.

1.1.2 Total Exposures

Indicate the total exposures as set out in Section 1 – Leverage Ratio Calculation of the LRR.

1.1.3 Authorized Leverage Ratio (%)

Indicate the leverage ratio authorized by the institution’s regulator.

1.1.3 blank line%

1.2 Leverage Ratio Score
Use the scoring grid below to determine the member institution’s leverage ratio score.
Range of Scores for Leverage RatioScore
Leverage ratio (1.1) is ≥ 110% of the leverage ratio authorized by the regulator (1.1.3)10
Leverage ratio (1.1) is ≥ 100% but < 110% of the leverage ratio authorized by the regulator (1.1.3)7
Leverage ratio (1.1) is < 100% of the leverage ratio authorized by the regulator (1.1.3)0
1.2 Leverage Ratio Score
1.3 Tier 1 Capital Ratio (%)
Formula:

(Net Tier 1 Capital) ÷ (Adjusted Tier 1 Capital Risk-weighted Assets) × 100

Complete the following:

(1.3.1 — — — —) ÷ (1.3.2 — — — —) × 100 = 1.3 blank line%

Elements

Use the instructions below to arrive at the elements of the formula.

Refer to the Basel III Capital Adequacy Reporting — Credit, Market and Operational Risk (BCAR) form, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

1.3.1 Net Tier 1 Capital

Indicate the net Tier 1 capital as set out in Schedule 1 – Ratio Calculations of the BCAR form.

1.3.2 Adjusted Tier 1 Capital Risk-Weighted Assets

Indicate the adjusted Tier 1 Capital risk-weighted assets as set out in Schedule 1 – Ratio Calculations of the BCAR form.

1.3.3 Minimum Required Tier 1 Capital Ratio

Indicate the minimum required Tier 1 capital ratio as set by the regulator for the member institution in accordance with the Capital Adequacy Requirements Guideline of the Guidelines, but if a different minimum required Tier 1 capital ratio has been set by the regulator by written notice sent to the member institution, indicate that ratio instead.

1.3.4 “All in” Target Tier 1 Capital Ratio

Indicate the “all in” target Tier 1 capital ratio (including the capital conservation buffer and domestic systemically important bank surcharge as applicable) as set by the regulator for the member institution in accordance with the Capital Adequacy Requirements Guideline of the Guidelines, but if a different all-in target Tier 1 capital ratio has been set by the regulator by written notice sent to the member institution, indicate that ratio instead.

1.4 Tier 1 Capital Ratio Score
Use the scoring grid below to determine the member institution’s Tier 1 capital ratio score.
Range of Scores for Tier 1 Capital RatioScore
Tier 1 capital ratio (1.3) is > “all in” target Tier 1 capital ratio (1.3.4)10
Tier 1 capital ratio (1.3) is ≤ “all in” target Tier 1 capital ratio (1.3.4) but > minimum required Tier 1 capital ratio (1.3.3)6
Tier 1 capital ratio (1.3) is < minimum required Tier 1 capital ratio (1.3.3)0
1.4 Tier 1 Capital Ratio Score
1.5 Capital Adequacy Score

Calculate the capital adequacy score by completing the following formula.

Formula:

Leverage Ratio Score + Tier 1 Capital Ratio Score = Capital Adequacy Score

Complete the following:

1.2 blank line + 1.4 blank line = 1.5blank line

1.5 Capital Adequacy Score
2 RETURN ON RISK-WEIGHTED ASSETS (%)
Formula:
Multiply by 100 the result of the following: Net Income or Loss divided by the result of dividing by 2 the sum of Adjusted /Tier 1/ risk-weighted assets as of the end of the preceding fiscal year plus Adjusted /Tier 1/ risk-weighted assets as /of/ the end of the fiscal year ending in the second year preceding the filing year.
Complete the following:

(2.1 — — — —) ÷ (( 2.2 — — — — + 2.3 — — — — ) / 2) × 100 = 2 blank line%

Elements

Use the instructions below to arrive at the elements of the formula.

Refer to the following documents:

  • (a) the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI, Reporting Manual, completed in accordance with that Manual as of the fiscal year ending in the year preceding the filing year; and

  • (b) the Basel III Capital Adequacy Reporting — Credit, Market and Operational Risk (BCAR) form, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

2.1 Net Income or Loss

The net income or loss attributable to equity holders and non-controlling interests (the latter to be reported as a negative number) as set out in the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI.

2.2 Adjusted Tier 1 Capital Risk-Weighted Assets as of the End of the Fiscal Year Ending in the Year Preceding the Filing Year

Indicate the adjusted Tier 1 Capital risk-weighted assets as set out in Schedule 1 — Ratio Calculations of the BCAR form.

2.3 Adjusted Tier 1 Capital Risk-Weighted Assets as of the End of the Fiscal Year Ending in the Second Year Preceding the Filing Year

Calculate the adjusted Tier 1 Capital risk-weighted assets as of the end of the fiscal year ending in the second year preceding the filing year in the same manner as for element 2.2.

If the member institution does not have a fiscal year ending in the second year preceding the filing year, it must report “zero”, unless it is an amalgamated institution described below.

If the member institution is an amalgamated member institution formed by an amalgamation involving one or more member institutions and does not have a fiscal year ending in the second year preceding the filing year, it must report the same amount as for element 2.2.

Score
Use the scoring grid below to determine the member institution’s score.
Range of resultsScore
Return on risk-weighted assets (2) is ≥ 1.15 %5
Return on risk-weighted assets (2) is ≥ 0.75 % and < 1.15 %3
Return on risk-weighted assets (2) is < 0.75 % or a negative number (where 2.1 is a negative number)0
2.4 Return on risk-weighted assets score
3 MEAN ADJUSTED NET INCOME VOLATILITY

If a member institution has been operating as a member institution for less than five fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), it must indicate “N/A” (“not applicable”) for elements 3, 3.1, 3.2 and 3.13 and fill in any of elements 3.3 to 3.12 that apply to it.

If a member institution has been operating as a member institution for five or more fiscal years but less than 10 fiscal years consisting of at least 12 months each (with the last fiscal year of operation ending in the year preceding the filing year), it must complete the formula using the fiscal years during which it has been operating with the appropriate adjustment to the value of “n”.

If a member institution formed by an amalgamation involving only one member institution has been operating as a member institution for less than three fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), in addition to filling in the applicable elements as an amalgamated member institution, it must also fill in the applicable elements for the amalgamating member institution.

If a member institution formed by an amalgamation involving two or more member institutions has been operating as a member institution for less than three fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), it must indicate “N/A” (“not applicable”) for elements 3, 3.1, 3.2 and 3.13 and fill in any of elements 3.3 to 3.12 that apply to it.

Formula:

(Standard deviation of the net income or loss) ÷ (Mean net income or loss)

Complete the following:

(3.1 — — — —) ÷ (3.2 — — — —) = 3 blank line

Elements

Use the instructions below to arrive at the elements of the formula.

3.1 Standard deviation of the Net Income or Loss

Determine the standard deviation of the net income or loss using the formula

The Square root of the result of the sum of each of the following subtraction formulas which sum result is divided by n minus 1: 3.3 minus 3.2 squared plus 3.4 minus 3.2 squared plus /3.5 minus 3.2 squared plus/ 3.6 minus 3.2 squared plus 3.7 minus 3.2 squared /plus 3.8 minus 3.2 squared plus 3.9 minus 3.2 squared plus 3.10 minus 3.2 squared plus 3.11 minus 3.2 squared plus 3.12 minus 3.2 squared/.

If a member institution has been operating as a member institution for 12 or more fiscal years consisting of at least 12 months each, “n” will be equal to 10.

If a member institution has been operating as a member institution for seven or more but less than 12 fiscal years consisting of at least 12 months each, for each year that it is not operating the portion of the formula in the numerator referencing that year would be removed and “n” will be equal to the number of years that it has been so operating less 2 (e.g, if operating for 11 years, remove “(3.12 – 3.2)2” from the numerator and “n” will be equal to 9).

If a member institution has been operating as a member institution for six fiscal years consisting of at least 12 months each, “+ (3.7 – 3.2)2 + (3.8 – 3.2)2 + (3.9 – 3.2)2 + (3.10 – 3.2)2 + (3.11 – 3.2)2 + (3.12 – 3.2)2” must be removed from the formula and “n” will be equal to 4.

If a member institution has been operating as a member institution for five fiscal years consisting of at least 12 months each, “+ (3.6 – 3.2)2 + (3.7 – 3.2)2 + (3.8 – 3.2)2 + (3.9 – 3.2)2 + (3.10 – 3.2)2 + (3.11 – 3.2)2 + (3.12 – 3.2)2” must be removed from the formula and “n” will be equal to 3.

3.2 Mean Net Income or Loss

Determine the mean net income or loss (the latter to be reported as a negative number) using the formula

((3.3 + 3.4 + 3.5 + 3.6 + 3.7 + 3.8 + 3.9 + 3.10 + 3.11 + 3.12)) ÷ n

If a member institution has been operating as a member institution for 12 or more fiscal years consisting of at least 12 months each, “n” will be equal to 10.

If a member institution has been operating as a member institution for seven or more but less than 12 fiscal years consisting of at least 12 months each, the portion of the formula in the numerator referencing the years that it was not operating is to be removed and “n” will be equal to the number of years that it has been so operating less 2 (e.g., if operating for 11 years, “+ 3.12” is removed from the numerator and “n” will be equal to 9).

If a member institution has been operating as a member institution for six fiscal years consisting of at least 12 months each, “+ 3.7 + 3.8 + 3.9 + 3.10 + 3.11 + 3.12” must be removed from the formula and “n” will be equal to 4.

If a member institution has been operating as a member institution for five fiscal years consisting of at least 12 months each, “+ 3.6 + 3.7 + 3.8 + 3.9 + 3.10 + 3.11 + 3.12” must be removed from the formula and “n” will be equal to 3.

Net income or loss (the latter to be reported as a negative number) after tax for each of the last 10 fiscal years.

Indicate the net income or loss as determined for element 2.1 for the fiscal year ending in the year preceding the filing year.blank lineblank line 3.3 blank line

Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.3. blank line 3.4 blank line

Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.4. blank line 3.5 blank line

Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.5. blank line 3.6 blank line

Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.6. blank line 3.7 blank line

Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.7. blank line 3.8 blank line

Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.8. blank line 3.9 blank line

Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.9. blank line 3.10 blank line

Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.10. blank line 3.11 blank line

Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.11. blank line 3.12 blank line

Indicate the number of fiscal years that the member institution has been operating as a member institution (if less than 12).blank line

A member institution must report net income or loss for the last 10 fiscal years.

If a member institution has been operating as a member institution for less than three fiscal years of at least 12 months each and it is a member institution formed by an amalgamation involving only one member institution, it must report the net income or loss of the amalgamating member institution for the three fiscal years or less preceding the amalgamation, as applicable.

If a member institution has been operating as a member institution for less than five fiscal years of at least 12 months each, it must report “N/A” (“not applicable”) for the elements corresponding to the fiscal years for which it was not operating as a member institution.

Score
Use the scoring grid below to determine the member institution’s score.
Range of resultsScore
Mean adjusted net income volatility (3) is ≥ 0 and ≤ 0.55
Mean adjusted net income volatility (3) is > 0.5 and ≤ 1.253
Mean adjusted net income volatility (3) is > 1.250
Mean adjusted net income volatility (3) is negative or the mean net income or loss (3.2) is “zero”0
3.13 Mean adjusted net income volatility score
4 STRESS-TESTED NET INCOME

If a member institution has reported “N/A” (“not applicable”) in element 3.13, it must report “N/A” for elements 4A, 4B and 4.3.

Formulas:

(Net income or loss) – (1 × Standard deviation of the net income or loss) = Stress-tested net income using one standard deviation

(Net income or loss) – (2 × Standard deviation of the net income or loss) = Stress-tested net income using two standard deviations

Complete the following:

Stress-tested net income using one standard deviation:

4.1 blank line – (1 × 4.2blank line) = 4A blank line

Stress-tested net income using two standard deviations:

4.1 blank line – (2 × 4.2 blank line) = 4Bblank line

Elements

Use the instructions below to arrive at the elements of the formulas.

4.1 Net Income or Loss

Net income or loss as determined for element 2.1.

4.2 Standard deviation of the Net Income or Loss

The standard deviation of the net income or loss as determined for element 3.1.

Score
Use the scoring grid below to determine the member institution’s score.
Range of resultsScore
Stress-tested net income using two standard deviations (4B) is ≥ 05
Stress-tested net income using one standard deviation (4A) is ≥ 0, but stress-tested net income using two standard deviations (4B) is < 03
Stress-tested net income using one standard deviation (4A) is < 00
4.3 Stress-tested net income score
5 EFFICIENCY RATIO (%)
Formula:

(Total non-interest expenses) ÷ (Net interest income + Non-interest income) × 100

Complete the following:

(5.1 — — — —) ÷ (5.2 — — — — + 5.3 — — — — ) × 100 = 5 blank line%

Elements

Use the instructions below to arrive at the elements of the formula.

Refer to the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI, Reporting Manual, completed in accordance with that Manual for the fiscal year ending in the year preceding the filing year.

5.1 Total Non-Interest Expenses

Indicate the total non-interest expenses, as set out in the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI, less any charges for impairment included in that total.

5.2 Net Interest Income

Determine the net interest income by adding (a) and (b):

  • (a) Net interest income as set out in the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI

blank line
  • (b) Taxable equivalent adjustment (if any)

blank line

Total (insert as element 5.2 of the formula)

blank line
5.3 Non-Interest Income

Determine the non-interest income by adding (a) and (b):

  • (a) Non-interest income as set out in the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI

blank line
  • (b) Taxable equivalent adjustment (if any)

blank line

Total (insert as element 5.3 of the formula)

blank line
Score

Use the scoring grid below to determine the member institution’s score.

Range of resultsScore
Efficiency ratio (5) is ≥ 0% and ≤ 65%5
Efficiency ratio (5) is > 65% and ≤ 85%3
Efficiency ratio (5) is > 85% or a negative number0
5.4 Efficiency ratio score
6 NET IMPAIRED ASSETS TO TOTAL CAPITAL (%)
Formula:

(Net impaired on-balance sheet assets + Net impaired off-balance sheet assets) ÷ (Total Capital) × 100

Complete the following:

(6.1 — — — — + 6.2 — — — —) ÷ (6.3 — — — —) × 100 = 6 blank line%

Elements

Use the instructions below to arrive at the elements of the formula.

Refer to the following documents:

  • (a) the Return of Allowances for Expected Credit Losses, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year; and

  • (b) the Basel III Capital Adequacy Reporting — Credit, Market and Operational Risk (BCAR) form, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

6.1 Net Impaired On-Balance Sheet Assets

Indicate the net impaired on-balance sheet assets as set out for the total of the column “Net Impaired Amount” in the Return of Allowances for Expected Credit Losses. If the result is negative, report “zero”.

6.2 Net Impaired Off-Balance Sheet Assets

Calculate the net impaired off-balance sheet assets by subtracting the total of the column “Individual allowance for impairment” in Table 6A from the total of the column “Credit equivalent” in that Table. If the result is negative, report “zero”.

6.3 Total Capital

Indicate the total capital set out in Schedule 1 of the BCAR form.

Table 6A — Impaired Off-balance Sheet Assets

(Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)

Impaired Instruments

Notional principal amount

a

Credit conversion factor

b

Credit equivalent

(a × b)

Individual allowance for impairment
Direct credit substitutes – excluding credit derivatives100%
Transaction-related contingencies50%
Short-term self-liquidating trade-related contingencies20%
Sale & repurchase agreements100%
Forward asset purchases100%
Forward forward deposits100%
Partly paid shares and securities100%
NIFs & RUFs50%
Undrawn commitments – excluding securitization exposureStandardized Approach0%
20%
50%
Advanced IRB ApproachFootnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)**
Footnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)**
Footnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)**
Impaired OTC Derivative Contracts
Credit derivative contractsFootnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)*
Interest rate contractsFootnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)*
Foreign exchange & gold contractsFootnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)*
Equity-linked contractsFootnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)*
Precious metals (other than gold) contractsFootnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)*
Other commodity contractsFootnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)*
Total
Use these totals to calculate element 6.2
  • Return to footnote *Fill in the total amounts of the contracts under the heading “Credit equivalent amount” from Table 6B.

  • Return to footnote **Refer to the Capital Adequacy Requirements Guideline to determine the applicable credit conversion factor.

Table 6B — Impaired OTC Derivative Contracts

(Complete Table 6B as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)

Impaired OTC Derivative Contracts (in thousands of dollars)Credit derivative contractsInterest rate contractsForeign exchange & gold contractsEquity-linked contractsPrecious metals (other than gold) contractsOther commodity contractsOther contracts
Replacement cost (market value)

a. Contracts held for trading purposes

(all contracts before permissible netting)

Gross positive replacement cost
Gross negative replacement cost

b. Contracts held for other than trading

(all contracts before permissible netting)

Gross positive replacement cost
Gross negative replacement cost

c. Contracts subject to permissible netting

(included in a and b above)

Gross positive replacement cost
Gross negative replacement cost
Net positive replacement cost

d. Total contracts – after permissible netting

Gross positive replacement cost

Potential credit exposure

Contracts not subject to permissible netting
Contracts subject to permissible netting

Credit equivalent amount

(after taking into account collateral and guarantees)

Contracts not subject to permissible netting
Contracts subject to permissible netting
Total Impaired OTC Derivative Contracts (carry forward to “Credit equivalent” column in Table 6A)
Score
Use the scoring grid below to determine the member institution’s score.
Range of resultsScore
Net impaired assets to total capital (6) is < 20%5
Net impaired assets to total capital (6) is ≥ 20% and < 40%3
Net impaired assets to total capital (6) is ≥ 40%0
6.4 Net impaired assets to total capital score
7 THREE-YEAR MOVING AVERAGE ASSET GROWTH (%)

If a member institution has been operating as a member institution for less than six fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), it must indicate “N/A” (“not applicable”) for elements 7 and 7.5 but still fill in any of elements 7.1 to 7.4 that apply to it.

If a member institution formed by an amalgamation involving only one member institution has been operating as a member institution for less than four fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), in addition to filling in the applicable elements as an amalgamated member institution, it must also fill in the applicable elements for the amalgamating member institution.

If a member institution formed by an amalgamation involving two or more member institutions has been operating as a member institution for less than four fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), it must indicate “N/A” (“not applicable”) for elements 7 and 7.5 but still fill in any of elements 7.1 to 7.4 that apply to it.

If a member institution acquires assets in the fiscal year ending in the year preceding the filing year as a result of a merger with or the acquisition of a regulated deposit-taking institution or as a result of the acquisition of the deposit-taking business of a regulated institution, and the value of those acquired assets on the date of their acquisition exceeds 15% of the value of the consolidated assets of the member institution immediately before that merger or acquisition, the member institution must include the value of those acquired assets in elements 7.1 to 7.3.

Formula:
The result of the sum of Assets Year 2 plus Assets Year 3 plus Assets Year 4 which sum is divided by 3 which result is divided by the result of the sum of Assets Year 1 plus Assets Year 2 plus Assets Year 3 which sum is divided by 3. From the result of the division, subtract 1 and multiply the result by 100.
Complete the following:
The result of the sum of Assets Year 2 plus Assets Year 3 plus Assets Year 4 which sum is divided by 3 which result is divided by the result of the sum of Assets Year 1 plus Assets Year 2 plus Assets Year 3 which sum is divided by 3. From the result of the division, subtract 1 and multiply the result by 100.
Elements

Use the instructions below to arrive at the elements of the formula.

Assets for Years 1 to 4:

Assets for Year 1

Assets for Year 1 is the amount that the member institution entered as element 7.4 of the formula in the Reporting Form submitted by the member institution in the third filing year before the filing year in which this Reporting Form is being submitted.

Year 1:7.1blank line

Assets for Year 2

Assets for Year 2 is the amount that the member institution entered as element 7.4 of the formula in the Reporting Form submitted by the member institution in the second filing year before the filing year in which this Reporting Form is being submitted.

Year 2:7.2blank line

Assets for Year 3

Assets for Year 3 is the amount that the member institution entered as element 7.4 of the formula in the Reporting Form submitted by the member institution in the filing year before the filing year in which this Reporting Form is being submitted.

Year 3:7.3blank line

Assets for Year 4

Refer to the Leverage Requirements Return (LRR), Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year, and to the Basel III Capital Adequacy Reporting – Credit, Market and Operational Risk (BCAR) form, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

Assets for Year 4 is the amount that the member institution determines by adding the following:

  • (a) the total of the amounts set out in the column “Total” for Securitized Assets – Unrecognized – Institution’s own assets (bank originated or purchased) – Traditional securitizations of Section I – Memo Items of the Consolidated Monthly Balance Sheet,

  • (b) if applicable, the value of assets, acquired by the member institution in the fiscal year ending in the year preceding the filing year as a result of a merger or acquisition referred to in the fourth paragraph after the heading “7 THREE-YEAR MOVING AVERAGE ASSET GROWTH (%)”, for years 1, 2 and 3, if the value of those assets on the date of their acquisition exceeds 15% of the value of the consolidated assets of the member institution immediately before that merger or acquisition, and

  • (c) the amount determined by using the formula 7.4.1 + 7.4.2 + 7.4.3 + 7.4.4 + 7.4.5 + 7.4.6 + 7.4.7 + 7.4.8 – 7.4.9 – 7.4.10 + (7.4.11 – 7.4.12) – 7.4.13 – 7.4.14 + 7.4.15 + 7.4.16 + 7.4.17 + 7.4.18 + 7.4.19 + 7.4.20 + 7.4.21 + 7.4.22 – 7.4.23 – 7.4.24 – 7.4.25 – 7.4.26.

7.4.1 On-balance sheet assets

Indicate the amount set out in the column “Accounting balance sheet value” for On-balance sheet assets - for purposes of the Leverage Ratio, as set out in Section 1 – Leverage Ratio Calculation of the LRR.

7.4.2 Off-balance sheet Eligible servicer cash advance facilities

Indicate the amount set out in the column “Notional Amount” for Eligible servicer cash advance facilities – 10% CCF, as set out in Section 1 – Leverage Ratio Calculation of the LRR.

7.4.3 Other Off-balance sheet Securitization exposures

Indicate the amount set out in the column “Notional Amount” for Other off-balance sheet securitization exposures – 100% CCF, as set out in Section 1 – Leverage Ratio Calculation of the LRR.

7.4.4 Off-balance sheet Direct credit substitutes

Indicate the amount set out in the column “Notional Amount” for Direct credit substitutes – 100% CCF, as set out in Section 1 – Leverage Ratio Calculation of the LRR.

7.4.5 Off-balance sheet Transaction-related contingent items

Indicate the amount set out in the column “Notional Amount” for Transaction-related contingent items – 50% CCF, as set out in Section 1 – Leverage Ratio Calculation of the LRR.

7.4.6 Off-balance sheet Short-term self-liquidating trade letters of credit

Indicate the amount set out in the column “Notional Amount” for Short-term self-liquidating trade letters of credit – 20% CCF, as set out in Section 1 – Leverage Ratio Calculation of the LRR.

7.4.7 Total derivative contract exposure (not covered)

Indicate the amount set out in the column “Total Contracts” for (A) Single derivative exposure not covered by an eligible netting contract, (i) Replacement cost – Gross positive replacement cost”, as set out in Section 2 – Derivative Exposure Calculation of the LRR.

7.4.8 Total derivative contract exposure (covered)

Indicate the amount set out in the column “Total Contracts” for “(B) Derivative exposure covered by an eligible netting contract, (i) Replacement cost – Net positive replacement cost”, as set out in Section 2 – Derivative Exposure Calculation of the LRR.

7.4.9 On-balance sheet Derivatives

Indicate the amount set out in the column “Accounting balance sheet value” for Derivatives, as set out in Section 1 – Leverage Ratio Calculation of the LRR.

7.4.10 On-balance sheet Grandfathered securitization exposures

Indicate the amount set out in the column “Accounting balance sheet value” for Grandfathered securitization exposures, as set out in Section 1 – Leverage Ratio Calculation of the LRR.

7.4.11 Net Common Equity Tier 1 Capital (CET1 after all deductions)

Indicate the Net Common Equity Tier 1 Capital (CET1 after all deductions), as set out in Schedule 3 – Capital and TLAC Elements of the BCAR form.

7.4.12 Gross Common Equity Tier 1 Capital

Indicate the Gross Common Equity Tier 1 Capital, as set out in Schedule 3 – Capital and TLAC Elements of the BCAR form.

7.4.13 Total Deduction from Additional Tier 1 Capital

Indicate the Total Deduction from Additional Tier 1 Capital, as set out in Schedule 3 – Capital and TLAC Elements of the BCAR form.

7.4.14 Total Deduction from Tier 2 Capital

Indicate the Total Deduction from Tier 2 Capital, as set out in Schedule 3 – Capital and TLAC Elements of the BCAR form.

7.4.15 Eligible stage 1 and stage 2 allowance

Indicate the Eligible stage 1 and stage 2 allowance (re standardized approach), as set out in Schedule 3 – Capital and TLAC Elements of the BCAR form.

7.4.16 Excess allowance

Indicate the Excess allowance (re IRB approach), as set out in Schedule 3 – Capital and TLAC Elements of the BCAR form.

7.4.17 Direct credit substitutes – credit derivatives – Standardized Approach

Indicate the amount set out in the column “Notional Principal Amount (a)” for Direct credit substitutes – credit derivatives, as set out in Schedule 39 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures of the BCAR form.

7.4.18 Direct credit substitutes – credit derivatives – Foundation IRB approach

Indicate the amount set out in the column “Notional Principal Amount (d)” for Direct credit substitutes – credit derivatives, as set out in Schedule 39 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures of the BCAR form.

7.4.19 Direct credit substitutes – credit derivatives – Advanced IRB approach

Indicate the amount set out in the column “Notional Principal Amount (g)” for Direct credit substitutes – credit derivatives, as set out in Schedule 39 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures of the BCAR form.

7.4.20 Sale and repurchase agreements – Standardized approach

Indicate the amount set out in the column “Notional Principal Amount (a)” for Sale & repurchase agreements, as set out in Schedule 39 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures of the BCAR form.

7.4.21 Sale and repurchase agreements – Foundation IRB approach

Indicate the amount set out in the column “Notional Principal Amount (d)” for Sale & repurchase agreements, as set out in Schedule 39 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures of the BCAR form.

7.4.22 Sale and repurchase agreements – Advanced IRB approach

Indicate the amount set out in the column “Notional Principal Amount (g)” for Sale & repurchase agreements, as set out in Schedule 39 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures of the BCAR form.

7.4.23 Stage 1 and Stage 2 allowance on balance sheet assets

Indicate the Stage 1 and Stage 2 allowance on balance sheet assets for capital purposes, as set out in Schedule 45 – Balance Sheet Coverage by Risk Type and Reconciliation to Consolidated Balance Sheet of the BCAR form.

7.4.24 “On-balance sheet” securitization exposures

Indicate the “On-balance sheet” securitization exposures recognized for capital ratio but not for consolidated balance sheet purposes, as set out in Schedule 45 – Balance Sheet Coverage by Risk Type and Reconciliation to Consolidated Balance Sheet of the BCAR form.

7.4.25 Adjustments – measurement bases

Indicate the Adjustments to reflect differences in balance sheet exposure amounts resulting from measurement bases used for accounting purposes (fair values) as set out in Schedule 45 – Balance Sheet Coverage by Risk Type and Reconciliation to Consolidated Balance Sheet of the BCAR form.

7.4.26 Adjustments – recognition bases

Indicate the Adjustments to reflect differences in balance sheet exposure amounts resulting from recognition bases used for accounting purposes (settlement / trade date), as set out in Schedule 45 – Balance Sheet Coverage by Risk Type and Reconciliation to Consolidated Balance Sheet of the BCAR form.

Year 4:7.4blank line
Indicate the number of fiscal years consisting of at least 12 months that the member institution has been operating as a member institution (if less than six fiscal years).
A member institution must report assets for the last four fiscal years.
If a member institution has been operating as a member institution for less than four fiscal years consisting of at least 12 months each, it must indicate “N/A” (“not applicable”) for the elements corresponding to the fiscal years for which it was not operating as a member institution.
Score
Use the scoring grid below to determine the member institution’s score.
Range of ResultsScore
Three-year moving average asset growth is ≤ 15% (including negative results)5
Three-year moving average asset growth is > 15% and ≤ 40%3
Three-year moving average asset growth is > 40%0
7.5 Three-year moving average asset growth score
8 REAL ESTATE ASSET CONCENTRATION

A member institution that is a domestic systemically important bank is not required to complete item 8 and will insert “N/A” as its score for element 8.5. It must complete element 8-1.

Threshold Formula:

(Total Mortgage Loans) ÷ (Total Mortgage Loans + Total Non-Mortgage Loans + Total Securities + Total Acceptances) × 100

Complete the following:

(8.1 — — — —) ÷ (8.1 — — — — + 8.2 — — — — + 8.3 — — — — + 8.4 — — — —) × 100 = blank line%

Elements

Use the instructions below to arrive at the elements of the threshold formula.

Refer to Section I of the Consolidated Monthly Balance Sheet, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

8.1 Total Mortgage Loans

The total mortgage loans is the total of the amounts set out in the column “Total” for “Mortgage Loans, less allowance for expected credit losses” in Section I — Assets of the Consolidated Monthly Balance Sheet, before deducting any allowance for expected credit losses.

8.2 Total Non-Mortgage Loans

The total non-mortgage loans is the total of the amounts set out in the column “Total” for “Non-Mortgage Loans, less allowance for expected credit losses” in Section I – Assets of the Consolidated Monthly Balance Sheet, before deducting any allowance for expected credit losses.

8.3 Total Securities

The total securities is the total of the amounts set out in the column “Total” for Securities set out in Section I — Assets of the Consolidated Monthly Balance Sheet.

8.4 Total Acceptances

The total acceptances is the total of the amounts set out in the column “Total” for “Customers liability under acceptances, less allowance for expected credit losses” in Section I — Assets of the Consolidated Monthly Balance Sheet.

If the result of the threshold formula is less than 10%, score five for element 8.5 and do not complete the rest of section 8.

If that result is greater than or equal to 10%, complete the rest of section 8.

Fill in Table 8 using the definitions and instructions below.

Refer to Section III of the Mortgage Loans Report, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year. A member institution may complete these calculations using the information reported in the Mortgage Loans Report filed at its year-end or, if not filed at its year-end, at the calendar quarter-end preceding that year-end.

Fill in Table 8 for each of the following types of outstanding mortgages.
Residential Properties Mortgage Loans

Mortgage loans of this type, secured by properties located in Canada, are to be classified in accordance with the Reporting Manual.

Calculate the total mortgage loans of this type by adding together the amounts set out for “Total Residential” in the columns “Insured” and “Uninsured” under “Gross Mortgage Loans Outstanding” in Section III of the Mortgage Loans Report, before deducting any allowance for expected credit losses.

Land Development Mortgage Loans

Mortgage loans of this type, secured by properties located in Canada, are to be classified in accordance with the Reporting Manual.

Calculate by adding together

  • (a) the total land banking and development mortgage loans determined by adding together the amounts set out for “Land Banking and Development” in the columns “Insured” and “Uninsured” under “Gross Mortgage Loans Outstanding” in Section III of the Mortgage Loans Report, before deducting any allowance for expected credit losses, and

  • (b) the total residential interim construction mortgage loans determined by adding together the amounts set out for “Residential interim construction mortgages” in the columns “Insured” and “Uninsured” under “Gross Mortgage Loans Outstanding” in Section III of the Mortgage Loans Report, before deducting any allowance for expected credit losses.

Hotel and Motel Properties Mortgage Loans

Mortgage loans of this type, secured by properties located in Canada, are to be classified in accordance with the Reporting Manual.

Calculate the total mortgage loans of this type by adding together the amounts set out for “Hotels/motels” in the columns “Insured” and “Uninsured” under “Gross Mortgage Loans Outstanding” in Section III of the Mortgage Loans Report, before deducting any allowance for expected credit losses.

Industrial Properties Mortgage Loans

Mortgage loans of this type, secured by properties located in Canada, are to be classified in accordance with the Reporting Manual.

Calculate the total mortgage loans of this type by adding together the amounts set out for “Industrial buildings” in the columns “Insured” and “Uninsured” under “Gross Mortgage Loans Outstanding” in Section III of the Mortgage Loans Report, before deducting any allowance for expected credit losses.

Single Family Dwelling Properties Mortgage Loans

Mortgage loans of this type, secured by properties located in Canada, are to be classified in accordance with the Reporting Manual.

Calculate the total mortgage loans of this type by adding together the amounts set out for “Single detached” and “Condominiums” in the columns “Insured” and “Uninsured” under “Gross Mortgage Loans Outstanding” in Section III of the Mortgage Loans Report, before deducting any allowance for expected credit losses.

Second or Subsequent Mortgage Loans Outstanding

Mortgage loans of this type, secured by properties located in Canada, are to be classified in accordance with the Reporting Manual.

The total mortgage loans of this type is the amount set out for “Second and subsequent mortgages outstanding” in the column “Amounts Outstanding” in the second table of the Memo Items to Section IV of the Mortgage Loans Report, before deducting any allowance for expected credit losses.

Real Estate Under Power of Sale or Foreclosed Properties

Properties of this type, located in Canada, are to be classified in accordance with the Reporting Manual.

Calculate by adding together

  • (a) for foreclosed properties located in Canada, the amount set out in the column “Total” for Foreclosed long-lived assets acquired in the liquidation of a loan — Held for sale of Section I — Memo Items of the Consolidated Monthly Balance Sheet, and

  • (b) for real estate under power of sale, the amount set out in the column “Total” for Power of Sale Loans related to Real Estate of Section I — Memo Items of the Consolidated Monthly Balance Sheet.

Table 8

ABCDE
TypeAmountPercentage of Total Mortgage Loans

(Amount from Column B ÷ Total Mortgage LoansFootnote for *) x 100

Range of ResultsScoreFootnote for **
Residential Properties Mortgage Loans

< 50% = 0

≥ 50% and < 75% = 3

≥ 75% = 5

Land Development Mortgage Loans

> 10% = 0

> 5% and ≤ 10% = 3

≤ 5% = 5

Hotel and Motel Properties Mortgage Loans

> 10% = 0

> 5% and ≤ 10% = 3

≤ 5% = 5

Industrial Properties Mortgage Loans

> 15% = 0

> 10% and ≤ 15% = 3

≤ 10% = 5

Single Family Dwelling Properties Mortgage Loans

< 35% = 0

≥ 35% and < 50% = 3

≥ 50% = 5

Second or Subsequent Mortgage Loans

> 10% = 0

> 5% and ≤ 10% = 3

≤ 5% = 5

Real Estate Under Power of Sale or Foreclosed Properties

> 8% = 0

> 5% and ≤ 8% = 3

≤ 5% = 5

  • Return to footnote *“Total Mortgage Loans” used in the calculation in column C must correspond to the amount of the Total Mortgage Loans determined for element 8.1.

  • Return to footnote **Fill in the score in column E for a type of mortgage loan or property set out in column A that corresponds to the percentage set out in column C, in accordance with the appropriate range set out in column D.

Score
Use the scoring grid below to determine the member institution’s score.
ResultsScore
Lowest score in Column E of Table 8 is 00
Lowest score in Column E of Table 8 is 33
All scores in Column E of Table 8 are 55
Result of the threshold formula is < 10% of Total Assets5
8.5 Real Estate Asset Concentration Score
8-1 ASSET ENCUMBRANCE MEASURE

Only a member institution that is a domestic systemically important bank must complete item 8-1. All other member institutions are to insert “N/A” for item 8-1.3.

8-1.1 Unencumbered Asset Concentration
Threshold Formula:

(Total Liabilities – (Subordinated Debt + Covered Bonds Liabilities + Securitization Liabilities + Repos + Shorts)) ÷ (Total Assets – (Impairment + Total Pledged Assets)) × 100

Complete the following:

(8-1.1.1 — — — – (8-1.1.2 — — — + 8-1.1.3 — — — + 8-1.1.4 — — — + 8-1.1.5 — — — + 8-1.1.6 — — — )) ÷ (8-1.1.7 — — — – (8-1.1.8 — — — + 8-1.1.9 — — — )) × 100 =
8-1.1 blank line%

Elements

Use the instructions below to arrive at the elements of the formula.

Refer to the Consolidated Monthly Balance Sheet and Section I of the Pledging and Repos Report, Reporting Manual, all completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

8-1.1.1 Total Liabilities

The total liabilities is calculated by deducting from the amount set out in the column “Total” for Total Liabilities and Shareholders’ Equity the amounts included as shareholders’ equity in Section II – Liabilities of the Consolidated Monthly Balance Sheet.

8-1.1.2 Subordinated Debt

The total subordinated debt is the amount set out in the column “Total” for Subordinated Debt in Section II – Liabilities of the Consolidated Monthly Balance Sheet.

8-1.1.3 Covered Bonds Liabilities

The covered bonds liabilities is the total of the amounts set out in the column “Total” for Selected information on covered bonds liabilities in Section II – Memo Items of the Consolidated Monthly Balance Sheet.

8-1.1.4 Securitization Liabilities

The securitization liabilities is the total of the amounts set out in the column “Total” for Securitization notes payable (institution’s own assets) and Securitization notes payable (third party assets) as set out for the Mortgages and Loans Payable in Section II – Memo Items of the Consolidated Monthly Balance Sheet.

8-1.1.5 Repos

The obligations related to assets sold under repurchase agreements is the amount set out in the column “Total” for Obligations related to assets sold under repurchase agreements in Section II – Liabilities of the Consolidated Monthly Balance Sheet.

8-1.1.6 Shorts

The obligations related to borrowed securities is the amount set out in the column “Total” for Obligations related to borrowed securities in Section II – Liabilities of the Consolidated Monthly Balance Sheet.

8-1.1.7 Total Assets

The total assets is the amount set out in the column “Total” for Total assets in Section I – Assets of the Consolidated Monthly Balance Sheet.

8-1.1.8 Impairment

Impairment is the total amount set out in the column “Credit Impaired Assets” less the aggregate of the total amount set out in the column “Collectively Assessed Allowance” and the total amount set out in the column “Individually Assessed Allowance” under “Assets and expected credit losses allowances” in the Memo Items to Section I of the Consolidated Monthly Balance Sheet.

8-1.1.9 Total Pledged Assets

The total pledged assets is the total of the amounts set out in the column “OUTSTANDING END OF PERIOD – CONSOLIDATED ENTITY” for TOTAL and REPURCHASE AGREEMENTS (REPOS) of SECTION I – PLEDGING AND REPURCHASE AGREEMENTS of the Pledging and Repos Report.

If the result of the threshold formula is equal to or less than 100%, score five for element 8-1.3 and do not complete the rest of item 8-1.

If the result is greater than 100%, complete the rest of item 8-1.

8-1.2 Pledged Asset Ratio
Formula:

(Total Pledged Assets) ÷ (Total Assets) × 100

Complete the following:

(8-1.2.1 — — — —) ÷ (8-1.2.2 — — — —) × 100 = 8-1.2blank line%

8-1.2.1 Total Pledged Assets

Indicate the total pledged assets as determined for element 8-1.1.9.

8-1.2.2 Total Assets

Indicate the total assets as determined for element 8-1.1.7.

Score
Use the scoring grid below to determine the member institution’s score.
Range of resultsScore
Result of the threshold formula in 8-1.1 is ≤100%5
Result of the formula in 8-1.2 is < 50%3
Result of the formula in 8-1.2 is ≥ 50%0
8-1.3 Asset Encumbrance Measure Score
9 AGGREGATE COMMERCIAL LOAN CONCENTRATION RATIO (%)

If the result of the threshold formula in section 8 is greater than 90%, indicate a score of five for element 9.4 and do not complete section 9.

If the result of the threshold formula in section 8 is equal to or less than 90%, or the member institution is a domestic systemically important bank, complete section 9.

Formula:

(Aggregate Commercial Loan Concentration) ÷ (Total Capital) × 100

Complete the following:

(9.1 — — — —) ÷ (9.2 — — — —) × 100 = 9 blank line%

Elements

Refer to the Non-Mortgage Loans Report, Reporting Manual, completed in accordance with that Manual. Use the instructions below to arrive at the elements of the formula. A member institution may complete these calculations using the information reported in the Non-Mortgage Loans Report filed at its year-end or, if not filed at its year-end, at the calendar quarter-end preceding that year-end.

9.1 Aggregate Commercial Loan Concentration

The aggregate commercial loan concentration is the total of column B in Table 9, expressed in thousands of dollars.

9.2 Total Capital

The total capital as determined for element 6.3, expressed in thousands of dollars.

Fill in Table 9 following the instructions and using the definitions below.
Loans

Loans are as described in the Non-Mortgage Loan Report

Person

Means a natural person or an entity.

Entity

Has the same meaning as in section 2 of the Bank Act.

Industry Sectors

For the purpose of completing Table 9, commercial loans shall be grouped according to the classifications used for completing the Non-Mortgage Loan Report and using the 12 industry sectors in the list below.

Industry Sector List

Calculate the commercial loans for each of the industry sectors in accordance with the following list and insert each of the totals on the appropriate line in Column A in Table 9. Refer to the Non-Mortgage Loans Report, Reporting Manual, completed in accordance with that Manual.

Agriculture

Commercial loans of this type are to be classified in accordance with the Reporting Manual.

Calculate the total by adding together the amounts in the columns “TC” under “Resident Loan Balances” and “Non-Resident Loan Balances” and subtracting the amount set out in the column “TC” under “Allowance for Expected Credit Losses”, all as set out for “Agriculture” in the Non-Mortgage Loans Report.

Fishing and Trapping

Commercial loans of this type are to be classified in accordance with the Reporting Manual.

Calculate the total by adding together the amounts in the columns “TC” under “Resident Loan Balances” and “Non-Resident Loan Balances” and subtracting the amount in the column “TC” under “Allowance for Expected Credit Losses”, all as set out for “Fishing and Trapping” in the Non-Mortgage Loans Report.

Logging and Forestry

Commercial loans of this type are to be classified in accordance with the Reporting Manual.

Calculate the total by adding together the amounts in the columns “TC” under “Resident Loan Balances” and “Non-Resident Loan Balances” and subtracting the amount in the column “TC” under “Allowance for expected credit losses”, all as set out for “Logging and Forestry” in the Non-Mortgage Loans Report.

Mining, Quarrying and Oil Wells

Commercial loans of this type are to be classified in accordance with the Reporting Manual.

Calculate the total by adding together the amounts in the columns “TC” under “Resident Loan Balances” and “Non-Resident Loan Balances” and subtracting the amount in the column “TC” under “Allowance for expected credit losses”, all as set out for “Mining, Quarrying and Oil Wells” in the Non-Mortgage Loans Report.

Manufacturing

Commercial loans of this type are to be classified in accordance with the Reporting Manual.

Calculate the total by adding together the amounts in the columns “TC” under “Resident Loan Balances” and “Non-Resident Loan Balances” and subtracting the amount in the column “TC” under “Allowance for expected credit losses”, all as set out for “Manufacturing” in the Non-Mortgage Loans Report.

Construction/Real Estate

Commercial loans of this type are to be classified in accordance with the Reporting Manual.

Calculate the total by adding together the amounts in the columns “TC” under “Resident Loan Balances” and “Non-Resident Loan Balances” and subtracting the amount in the column “TC” under “Allowance for expected credit losses”, all as set out for “Construction/Real Estate” in the Non-Mortgage Loans Report.

Transportation, Communication and Other Utilities

Commercial loans of this type are to be classified in accordance with the Reporting Manual.

Calculate the total by adding together the amounts in the columns “TC” under “Resident Loan Balances” and “Non-Resident Loan Balances” and subtracting the amount in the column “TC” under “Allowance for expected credit losses”, all as set out for “Transportation, Communication and Other Utilities” in the Non-Mortgage Loans Report.

Wholesale Trade

Commercial loans of this type are to be classified in accordance with the Reporting Manual.

Calculate the total by adding together the amounts in the columns “TC” under “Resident Loan Balances” and “Non-Resident Loan Balances” and subtracting the amount in the column “TC” under “Allowance for expected credit losses”, all as set out for “Wholesale Trade” in the Non-Mortgage Loans Report.

Retail

Commercial loans of this type are to be classified in accordance with the Reporting Manual.

Calculate the total by adding together the amounts in the columns “TC” under “Resident Loan Balances” and “Non-Resident Loan Balances” and subtracting the amount in the column “TC” under “Allowance for expected credit losses”, all as set out for “Retail” in the Non-Mortgage Loans Report.

Service

Commercial loans of this type are to be classified in accordance with the Reporting Manual.

Calculate the total by adding together the amounts in the columns “TC” under “Resident Loan Balances” and “Non-Resident Loan Balances” and subtracting the amount in the column “TC” under “Allowance for expected credit losses”, all as set out for “Service” in the Non-Mortgage Loans Report.

Multiproduct Conglomerates

Commercial loans of this type are to be classified in accordance with the Reporting Manual.

Calculate the total by adding together the amounts in the columns “TC” under “Resident Loan Balances” and “Non-Resident Loan Balances” and subtracting the amount set out in the column “TC” under “Allowance for expected credit losses”, all as set out for “Multiproduct Conglomerates” in the Non-Mortgage Loans Report.

Others (Private Not for Profit Institutions, Religious, Health and Educational Institutions)

Commercial loans of this type are to be classified in accordance with the Reporting Manual.

Calculate the total by adding together the amounts in the columns “TC” under “Resident Loan Balances” and “Non-Resident Loan Balances” and subtracting the amount set out in the column “TC” under “Allowance for expected credit losses”, all as set out for “Others (Private Not for Profit Institutions, Religious, Health and Educational Institutions)” in the Non-Mortgage Loans Report.

Table 9

Instructions

Insert 10% of total capital as determined for element 6.3: blank line9.3blank line

In column A below, report the amount calculated in accordance with the instructions for each industry sector.

In column B below, for each industry sector that has an amount reported in column A that

  • (a) exceeds the amount reported at element 9.3, report the amount by which it exceeds the amount reported at element 9.3; and

  • (b) does not exceed the amount reported at element 9.3, report “zero”.

Industry SectorColumn AColumn B (Column A minus element 9.3; if negative, report “0”)
Agriculture
Fishing & Trapping
Logging & Forestry
Mining, Quarrying & Oil Wells
Manufacturing
Construction / Real Estate
Transportation, Communication & Other Utilities
Wholesale Trade
Retail
Service
Multiproduct Conglomerates
Others (Private Not for Profit Institutions, Religious, Health & Educational Institutions
Total of Column B
Carry total of column B forward to element 9.1
Score
Use the scoring grid below to determine the member institution’s score.
Range of ResultsScore
Result of the threshold formula in section 8 is > 90%5
Aggregate commercial loan Concentration Ratio (9) < 100%5
Aggregate commercial loan Concentration Ratio (9) ≥ 100% and < 300%3
Aggregate commercial loan Concentration Ratio (9) ≥ 300%0
9.4 Aggregate commercial loan concentration ratio score
10 TOTAL QUANTITATIVE SCORE

Using the scores from each of the preceding items, fill in the scoring grid below to determine the total quantitative score.

FactorElementScore
Capital Adequacy1.5
Return on Risk-Weighted Assets2.4
Mean Adjusted Net Income Volatility3.13
Stress-Tested Net Income4.3
Efficiency Ratio5.4
Net Impaired Assets to Total Capital6.4
Three-Year Moving Average Asset Growth7.5
Real Estate Asset ConcentrationFootnote for *8.5
Asset Encumbrance MeasureFootnote for **8-1.3
Aggregate Commercial Loan Concentration Ratio9.4
Subtotal

If elements 3.13, 4.3 and 7.5 are all “N/A”, fill in the result determined in accordance with the following formula:

(Subtotal / 45) x 15

If none of elements 3.13, 4.3 and 7.5 are “N/A”, fill in “zero”.

If only element 7.5 is “N/A”, fill in the result determined in accordance with the following formula:

(Subtotal / 55) x 5

Total Quantitative Score
  • Return to footnote *Every member institution that is not a domestic systemically important bank must complete this item.

  • Return to footnote **Only a member institution that is a domestic systemically important bank must complete this item.

The information provided in this Reporting Form is based on:

blank line audited financial statements

blank line unaudited financial statements

This Reporting Form was prepared by
Name and Title:blank line
Business mailing address:blank line
Business telephone number:blank line
Business email address:blank line
Note: The above information may be used by CDIC to contact the member institution to discuss this Reporting Form.
Certification

The Chief Financial Officer, or other authorized officer, (Name of Officer),

by submitting this Reporting Form to the Canada Deposit Insurance Corporation, certifies that the information provided in this Reporting Form is correct and that it has been completed in accordance with the Canada Deposit Insurance Corporation Differential Premiums By-law.

Dateblank lineName of Member Institution

  • SOR/2000-38, ss. 3, 4(E), 5 to 9
  • SOR/2001-24, ss. 1, 2
  • SOR/2002-126, ss. 9 to 13
  • SOR/2005-48, ss. 10 to 18
  • SOR/2006-47, ss. 6, 7, 8(E), 9
  • SOR/2007-26, ss. 3, 4
  • SOR/2009-12, ss. 3 to 11
  • SOR/2010-4, ss. 6 to 10
  • SOR/2010-307, ss. 7, 8(E), 9 to 11
  • SOR/2011-312, ss. 1 to 4
  • SOR/2013-6, ss. 1 to 4
  • SOR/2014-29, ss. 2 to 6, 8
  • SOR/2015-75, ss. 14 to 24, 26(F)
  • SOR/2016-11, ss. 2, 3, 4(E), 5 to 7
  • SOR/2017-22, ss. 5 to 9
  • SOR/2018-8, ss. 5 to 8
  • SOR/2019-43, s. 11
  • SOR/2019-43, s. 12
  • SOR/2019-43, s. 13
  • SOR/2019-43, s. 14
  • SOR/2019-43, s. 15
  • SOR/2019-43, s. 16
  • SOR/2019-43, s. 17

SCHEDULE 3(Subsection 1(5) and sections 21 to 24.1 and 26)Scoring Grid — Quantitative Assessment

PART 1

Capital Adequacy

Range of Results
Column 1Column 2Column 3Column 4
ItemLeverage RatioScoreTier 1 Capital RatioScore
1Leverage ratio is ≥ 110% of the leverage ratio authorized by the regulator10Tier 1 capital ratio is > the “all in” target Tier 1 capital ratio set by the regulator for the member institution10
2Leverage ratio is ≥ 100% but < 110% of the leverage ratio authorized by the regulator7Tier 1 capital ratio is ≤ the “all in” target Tier 1 capital ratio set by the regulator for the member institution but > the minimum Tier 1 capital ratio required by the regulator6
3Leverage ratio is < 100% of the leverage ratio authorized by the regulator0Tier 1 capital ratio is < the minimum Tier 1 capital ratio required by the regulator0
Total of Leverage Ratio Score plus Tier 1 Capital Ratio Score

PART 2

Other Quantitative Factors or Criteria

Column 1Column 2Column 3
ItemFactors or CriteriaRange of ResultsScore
4Return on Risk-Weighted Assets≥ 1.15%5
≥ 0.75% and < 1.15%3
< 0.75% (including negative results)0
5Mean Adjusted Net Income Volatility≥ 0 and ≤ 0.55
> 0.5 and ≤ 1.253
> 1.250
if the result is negative or the mean net income or loss is zero0
6Stress-Tested Net Income
  • (a) using two standard deviations

≥ 05
  • (b) using one and two standard deviations

≥ 0 and < 0 respectively3
  • (c) using one standard deviation

< 00
7Efficiency Ratio≥ 0% and ≤ 65%5
> 65% and ≤ 85%3
< 0% or > 85%0
8Net Impaired Assets to Total Capital< 20%5
≥ 20% and < 40%3
≥ 40%0
9Three-Year Moving Average Asset Growth≤ 15% (including negative results)5
> 15% and ≤ 40%3
> 40%0
10Real Estate Asset ConcentrationFootnote for PART 2 Other Quantitative Factors or Criteria1Threshold formula result is ≤ 10%5
All scores in Column E of Table 8 of item 8 of the Reporting Form set out in Part 2 of Schedule 2 are 55
Lowest score in Column E of Table 8 of item 8 of the Reporting Form set out in Part 2 of Schedule 2 is 33
Lowest score in Column E of Table 8 of item 8 of the Reporting Form set out in Part 2 of Schedule 2 is 00
11Asset Encumbrance MeasureFootnote for PART 2 Other Quantitative Factors or Criteria28-1.1 ≤ 100%5
8-1.2 < 50%3
8-1.2 ≥ 50%0
12Aggregate Commercial Loan Concentration RatioResult of Threshold formula in item 8 of the Reporting Form set out in Part 2 of Schedule 2 is > 90%5
< 100%5
≥ 100% and < 300%3
≥ 300%0
  • Return to footnote 1The Real Estate Asset Concentration Score applies to member institutions other than domestic systemically important banks.

  • Return to footnote 2The Asset Encumbrance Measure Score applies to member institutions that are domestic systemically important banks.

  • SOR/2005-48, ss. 19, 20
  • SOR/2014-29, s. 7
  • SOR/2015-75, s. 25
  • SOR/2016-11, s. 8
  • SOR/2017-22, s. 10(E)
  • SOR/2018-8, s. 9
  • SOR/2019-43, s. 18

SCHEDULE 4(Section 28)

Examiner’s Rating

Column 1Column 2
ItemExaminer’s ratingScore
1135
2231
3321
4411
550
  • SOR/2004-57, s. 2
  • SOR/2006-47, s. 10

SCHEDULE 5

[Repealed, SOR/2005-116, s. 3]
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