Canada: Financial Sector Assessment Program-Crisis Management and Bank Resolution Framework-Technical Note
IMF Staff Country Reports, March 7, 2014
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Bibliographic details
- Published: March 7, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484329825.002
Summary
- This report underlies Canada’s Financial Sector Assessment Program (FSAP) in the areas of crisis management and bank resolution.
- The provincial deposit insurance systems (DIS) and resolution frameworks are highly heterogeneous and the FSAP’s analysis suggests that the preparedness to overcome financial stress should be enhanced.
- The IMF report discusses that the federal legal and institutional arrangements for resolving individual financial institutions are robust.
- The report suggests that clear mandates should be assigned to:
- (1) monitor systematic risk to facilitate macroprudential oversight; and
- (2) carry out system wide crisis preparedness.
Major findings
- Provincial DIS and resolution frameworks are highly heterogeneous across Canada, implying uneven preparedness for financial stress.
- Federal legal and institutional arrangements for resolving individual financial institutions are characterized as robust by the IMF analysis.
- There is a gap in responsibilities related to system-wide crisis preparedness and macroprudential monitoring that could weaken overall resilience.
Policy recommendations
- Assign clear mandates to a designated authority or authorities to:
- Monitor systematic risk to facilitate macroprudential oversight.
- Carry out system wide crisis preparedness measures.
- Enhance coordination between provincial deposit insurance systems (DIS) and federal resolution frameworks to reduce heterogeneity in preparedness.
Thematic scope and keywords
- Subject areas covered: Bank deposits, Bank resolution framework, Banking, Crisis management, Crisis resolution, Deposit insurance, Financial crises, Financial sector policy and analysis, Financial sector stability.
- Keywords included in the report metadata: Bank resolution framework, CDIC decal, CDIC decision, CDIC insurance determination rule, CDIC member, CDIC readiness, CDIC resolution power, CDIC shares responsibility, CDIC update FISC, central bank, CR, credit union, Crisis management, Crisis resolution, deposit insurance, Deposit insurance, Financial sector stability, financial system, Global, insurance coverage, ISCR.
International Monetary Fund. Canada: Financial Sector Assessment Program-Crisis Management and Bank Resolution Framework-Technical Note.