Canadian Bail-in Regime Update

CIBC Mortgage Market Performance and Urbanization Rates Mortgage Arrears by Number of Mortgages 5.0% 4.5% Canada U.K. U.S. 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 1995 1997 1999 2001 2003 2005 2007 Source: UK Finance, CBA, MBA. *Mortgage arrears of 3+ months in Canada and UK or in foreclosure process in the US 2019 2021 2023 Canada has one of the highest urbanisation rates in the G7 Over 45% of the Canadian population lives in one of the four largest cities A greater rate of urbanisation is a strong contributor to increases in property values % of Population • Canadian mortgages consistently outperform U.S. and U.K. mortgages Low defaults and arrears reflect the strong Canadian credit culture Mortgage interest is generally not tax deductible, resulting in an incentive for mortgagors to limit their amount of mortgage debt In most provinces, lenders have robust legal recourse to recoup losses Mortgage arrears have fallen from a peak of 0.45% in 2009 to 0.17% in October 20231 1 Source: Canadian Banker's Association Population in Top Four Cities 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Canada U.K. U.S. Source: 2014 Census for France, 2021 Census for Canada, 2011 Census for UK, Germany; 2020 Census for US Germany France 34

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