Scotiabank Investor Presentation
Summary of Bail-in / TLAC Regime
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Scope
Scope of bail-in
instruments
Liabilities excluded
from bail-in
TLAC compliance date
TLAC requirement
TLAC eligibility
Grandfathering
Sequencing and
preconditions
Form of bail-in
DSIB disclosure
requirements
OSFI designated DSIBS
Senior unsecured debt that is tradeable and transferable, original term >400 days, unsecured and issued, originated
or renegotiated after September 23, 2018
Insured deposits, uninsured deposits¹, debt with original term < 400 days, ABS / covered bonds, structured notes²,
derivative liabilities, other liabilities
November 1, 2021
24.0% minimum risk-based TLAC ratio as of November 1, 2021 (21.5% plus a 2.5% Domestic Stability Buffer)
6.75% minimum TLAC leverage ratio
Regulatory capital³ + bail-in debt with remaining term to maturity > 1 year4
All senior instruments issued prior to September 23, 2018, are to subject to bail-in unless renegotiated
1. Federal authorities bring bank into resolution
2. Full conversion of bank's NVCC instruments must occur prior to or concurrently with bail-in
Equity conversion
- Include disclosure related to the conversion power in any agreement governing an eligible liability as well as any
accompanying offering document
- Include a clause in the contractual provisions governing any eligible liability through which investors provide express
submission to the Canadian bail-in regime
- TLAC and TLAC leverage ratios are disclosed in the Bank's Quarterly Report and Supplementary Regulatory Capital
Disclosures
Bail-in is not the only path in Canada to resolve a failing bank. Canadian authorities retain full discretion
to use other powers including "vesting order", "receivership order", "bridge bank resolution order", etc.
• Equity conversion under the Canadian bail-in regime has the potential to result in realizable value in
excess of principal amount
1Yankee CD's with original term > 400 days are in-scope of bail-in
2 As per definition of structured notes in section 2(6) of the Bank Recapitalization (Bail-in) Conversion Regulations under the CDIC Act
3 Adjusted to fully include subordinated debentures with a remaining term of one to five years
4 Provided such bail-in debt meets certain other requirements
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