By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law: SOR/2022-54
Canada Gazette, Part II, Volume 156, Number 7
SOR/2022-54 March 14, 2022
CANADA DEPOSIT INSURANCE CORPORATION ACT
The Board of Directors of the Canada Deposit Insurance Corporation, pursuant to subsection 21(2) footnote a of the Canada Deposit Insurance Corporation Act footnote b, makes the annexed By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law.
Ottawa, December 8, 2021
The Minister of Finance, pursuant to subsection 21(3)footnote a of the Canada Deposit Insurance Corporation Act footnote b, approves the annexed By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law, made by the Board of Directors of the Canada Deposit Insurance Corporation.
Ottawa, March 10, 2022
Minister of Finance
By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law
1 The second paragraph under the heading “Single Family Dwelling Properties Mortgage Loans” in item 8 of the Reporting Form set out in Part 2 of Schedule 2 to the Canada Deposit Insurance Corporation Differential Premiums By-law footnote 1 is replaced by the following:
Calculate the total mortgage loans of this type by adding together the amounts set out for “Single detached” and “Individual condominium units” 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.
Coming into Force
2 This By-law comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the By-law.)
The Board of Directors of the Canada Deposit Insurance Corporation (CDIC) made the Canada Deposit Insurance Corporation Differential Premiums By-law (the By-law) on March 3, 1999, pursuant to subsection 21(2) and paragraph 11(2)(g) of the Canada Deposit Insurance Corporation Act (the CDIC Act). Subsection 21(2) of the CDIC Act authorizes the CDIC Board of Directors to make by-laws establishing a system of classifying member institutions into different categories, setting out the criteria or factors the CDIC will consider in classifying members into categories, establishing the procedures the CDIC will follow in classifying members, and fixing the amount of, or providing a manner of determining the amount of, the annual premium applicable to each category. The CDIC Board of Directors amended the By-law on January 12 and December 6, 2000; July 26, 2001; March 7, 2002; March 3, 2004; February 9 and April 15, 2005, February 8 and December 6, 2006, December 3, 2008; December 2, 2009; December 8, 2010; December 7, 2011; December 5, 2012; December 4, 2013; April 22, 2015; February 4 and December 7, 2016; December 6, 2017; December 5, 2018; March 6 and December 4, 2019; and December 9, 2020.
The CDIC annually reviews the By-law to confirm that it is up to date and that the terminology referenced in the By-law aligns with the terminology that is used in regulatory filings requested by the Office of the Superintendent of Financial Institutions (OSFI). Such alignment will ensure that the CDIC member institutions have clarity on the data requirements, and that the CDIC receives the appropriate information from its member institutions. As a result, technical amendments are being made in the By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law (the Amending By-law).
The amendments align the By-law with the OSFI’s Mortgage Loans Report.
The table below provides more detail about the amendments in the Amending By-law.
|Amending By-law section||By-law provision||Heading||Explanation|
|Section 1||Schedule 2, Part 2, Reporting Form item 8||Single family dwelling properties mortgage loans||Amendment modifies "Condominium units" to "Individual condominium units"|
The one-for-one rule does not apply, as there is no change in administrative costs to business associated with the Amending By-law.
Small business lens
The small business lens does not apply, as there are no costs to small business associated with the Amending By-law.
There are no available alternatives. The amendments must be done by way of a by-law.
The Amending By-law was prepublished in the Canada Gazette, Part I, on October 16, 2021, and subject to a 30-day consultation period. No comments were received.
The Amending By-law will ensure the By-law remains technically up to date, will achieve the stated objective, and addresses the identified issues. The Amending By-law will not impose any additional regulatory costs or administrative burden on industry.
Implementation, compliance and enforcement, and service standards
The Amending By-law comes into force on the day in which it is registered. There are no compliance or enforcement issues.
Senior Legal Counsel
Canada Deposit Insurance Corporation
50 O’Connor Street, 17th Floor