2018 Financial Performance
Overview of Canadian Bail-in Regulations.
Scope of Bail-in Debt
• Scope emphasizes operational feasibility,
credibility and preserving access to
liquidity in stress
• What's in scope:
o Issued, originated or renegotiated after September 23,
2018
o Long term (original term >400 days)
o Tradeable and transferrable
。 Unsecured
• What's not in scope:
• Deposits.
○ Most structured notes
o Secured liabilities
o Covered bonds
。 Derivatives
Bail-in Outcomes
• Bank stays open and operating
• DSIB is recapitalized with limited or no
taxpayer support and able to re-access
markets
Recoveries are consistent with relative
hierarchy of claims (shared losses)
○ Significant dilution of original common shareholders through
conversion of NVCC and Bail-in debt
o New common shares issued to NVCC and Bail-in debt
holders according to their relative rankings
⚫. No creditor worse off
•
Legacy (non-NVCC) instruments are not in
scope but would be subject to other
resolution tools to ensure that senior bail-
in debt holders are better off than holders
of legacy capital instruments
Scotiabank®
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