Investor Presentaiton
Canadian Bail-in Regulations: Jurisdictional Comparison
Best in class approach
Instrument type
Opco senior
Holdco senior
Holdco senior¹
Holdco senior
Opco non-
preferred senior
Ranking in Liquidation
Pari passu with deposits and other senior liabilities
Structural
subordination²
Structural
subordination²
Structural
subordination²
Contractual
subordination²
Deposits
Deposits
Other
senior
liabilities
Subordination
schematic
Senior
debt
subject
to
bail-in
Opco senior/senior preferred / other senior liabilities
Capital
Holdco senior / senior non-preferred
Capital
Depositor preference
No
Yes
Yes
Yes
Yes
Participation in equity
post resolution
Conversion to equity of the bank or an affiliate allows
participation in the upside, if any³
N/a4
Uncertain given
possibility of
writedown
Uncertain given
Uncertain given
possibility of
writedown
possibility of
writedown
Acceleration rights
upon failure to pay
principal and interest
1Applicable in practice for G-SIBS' issuance of non-capital bail-in debt
Yes
Yes
Yes
Yes
No5
2 Approach applicable to G-SIBS in relevant jurisdictions. Additionally, Switzerland uses structural subordination, Germany uses statutory subordination, Spain uses contractual subordination
3 Assuming only bail-in is triggered. If other resolution powers are exercised, debt holders could be exposed to losses in a manner similar to a write-down of their claims
4 No bail-in power. In resolution, debtholders could potentially receive partial recoveries (analogous to a write-down) or have their claims satisfied through the issuance of new securities (analogous to a bail-in conversion)
5 The terms of senior non-preferred do not include acceleration rights upon failure to pay principal and interest; however, there is no statutory restriction in this regard. Once resolution proceedings are underway, holders may declare an event of
default for failure to meet payment obligations
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