OTTAWA, ONTARIO--(Marketwired - Jun 12, 2013) - Canada Deposit Insurance Corporation (CDIC) announced today the signing of a memorandum of understanding (MOU) with the U.S. Federal Deposit Insurance Corporation (FDIC) that formalizes and strengthens cross-border cooperation in the event of the failure of a large, complex financial institution operating in both countries.
The MOU was signed in Ottawa by FDIC Chairman Martin J. Gruenberg and CDIC President and CEO Michèle Bourque.
"This agreement is another step in the significant effort underway by the FDIC to engage with our foreign counterparts and build the cross-border relationships critical to effective resolution planning," said Mr. Gruenberg. "The FDIC has worked closely with CDIC on many issues and this MOU is another important step that reflects our productive working relationship."
"One of the key lessons learned from the financial crisis was that effective planning will support stability and confidence in the financial system during stressful periods," said Ms. Bourque. "This agreement will advance our collaboration with our most significant international partner."
The agreement builds on the existing relationship between the FDIC and CDIC by enhancing and strengthening their consultation and cooperation and exchange of information related to crisis management and contingency planning, both during normal business times and during periods of financial stress.
Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that contributes to the stability of the Canadian financial system by providing deposit insurance against the loss of eligible deposits at member institutions in the event of failure. Eligible deposits are automatically covered to a limit of $100,000 per insured category at each member institution. CDIC 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. CDIC is self-funded by premiums paid by member institutions and does not receive public funds to operate.