Financial Health and Performance Overview
Summary of Bail-in / TLAC Regime
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 deposits, debt with original term < 400 days, ABS / covered bonds, structured
notes², derivative liabilities, other liabilities
November 1, 2021
24.5% minimum risk-based TLAC ratio as of February 1, 2023 (21.5% plus a 3% Domestic Stability Buffer)
7.25% 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 not 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
HIGHLIGHTS
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
1 Yankee 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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