Organization Deposit institutions
Québec City – The Autorité des marchés financiers (“AMF”) is pleased to announce the signing of a Memorandum of Understanding (“MOU”) with the Canada Deposit Insurance Corporation (“CDIC”) for co-operation and information exchange with respect to deposit insurance and resolution of domestic systemically important financial institutions (“D-SIFIs”).
“The signing of this MOU is a key step in our efforts to enhance and formalize co-operation between the AMF and other federal and provincial supervisors of the financial sector. This significant development will help us prevent and deal with the potential failure of a D-SIFI,” said Louis Morisset, AMF President and CEO. “By promoting improved risk management, the MOU will bolster market stability and strengthen industry and consumer confidence in the soundness of the Québec financial system.”
The MOU formalizes the information exchange process between the AMF and CDIC and opens up new possibilities for both agencies with respect to business continuity and crisis management. It will enable them to strengthen their overall collaboration and their co-ordination of certain authorized financial institutions.
This MOU complements the agreement signed by the two agencies in 1969 to avoid duplication of guarantees and inspection for trust companies and loan companies (savings companies) that were required to register with both the AMF and CDIC members. With the approaching 50th anniversary of the signing of the agreement, which enabled concerted intervention in the area of deposit insurance, the AMF and CDIC see the implementation of this MOU as an opportunity to consolidate and expand the scope of their long-standing collaborative relationship.
The MOU demonstrates the resolve of the AMF to comply with the principles of the International Association of Deposit Insurers, of which the AMF is one of the founding members. It also seeks to satisfy the expectations of the International Monetary Fund under its Financial Sector Assessment Program with respect to risk management of D-SIFIs and co-operation among federal and provincial authorities.
CDIC is a federal Crown corporation established in 1967 to protect the savings of Canadians. It contributes to financial stability by safeguarding over $770 billion in deposits. As resolution authority, CDIC is responsible for handling the failure of any of its members, from the smallest to the largest. Its members include banks, federally regulated credit unions as well as loan and trust companies and associations governed by the Cooperative Credit Associations Act that take deposits. It is funded by premiums paid by member institutions and does not receive public funds to operate.
About the AMF
The AMF is the body mandated by the Québec government to regulate Québec’s financial sector and assist consumers of financial products and services. It administers all legislation governing Québec’s financial sector, including the Deposit Insurance Act. Québec’s deposit insurance plan has contributed to the stability of Québec’s financial system and the confidence of participants since its inception in 1967. The AMF ensures the protection of deposits, takes preventive action to reduce the risk of insolvency of an institution and may be required to implement resolution operations in the event of an institution’s failure.
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Sylvain Théberge: 514-940-2176
Québec City: 418-525-0337
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