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

• 16 (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.

17 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.

18 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.

19 [Repealed, SOR/2021-28, s. 1]

Quantitative Factors

• 20 (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) If the Corporation makes an adjustment to the Reporting Form under subsection (1), it shall use the adjusted Reporting Form for the purpose of assigning scores under sections 21 to 27.

21 The Corporation shall assign to each member institution the sum of the scores set out in columns 2 and 4 of Part 1 of Schedule 3 that correspond, respectively, to the descriptions set out in columns 1 and 3 of that Part that apply to the results obtained for that institution in respect of elements 1.1 to 1.5 of item 1 of the Reporting Form.

22 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.

• 23 (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.

24 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.

• 24.1 (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.

25 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.

25.1 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.

26 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.

• 27 (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).

Qualitative Factors and Criteria

Examiner’s Rating

• 28 (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) are available to the Corporation for the member institution, the score to be assigned for the purposes of that subsection shall be the result determined in accordance with the formula

  (A ÷ 60) × 35

  where

  A

  is the sum of the scores assigned to the member institution under sections 21 to 27.