Investor Presentation Second Quarter 2018
CANADIAN REGULATORY ENVIRONMENT:
BAIL-IN AND TLAC
Banks to begin reporting TLAC measures in Q1/19
⚫ October 2011: Financial Stability Board (FSB) drafted recommendations regarding
resolution regimes for global systemically important banks
⚫ 2014: Canadian consultation process began. In 2016, amendments to CDIC Act, Bank Act
and other statutes were passed to allow for a bank recapitalization (bail-in) regime
o Provided CDIC statutory power to convert specified eligible liabilities of domestic systemically
important banks (DSIBS) into common shares in the event such banks become non-viable
。 Extended existing CDIC powers with respect to managing the unlikely scenario of a bank failure
2017-2018: Public consultation on bail-in regulations and related Total Loss Absorbing
Capital "TLAC"
○ July 2017: draft guideline/consultations completed
○ March 2018: bail-in regulations registered and compensation regulations came into force
○ April 2018: final bail-in and TLAC regulations released
○ September 23, 2018: Final TLAC guideline and conversion and issuance regulations come into force
• TLAC compliance for DSIBS
○ Beginning in fiscal Q1/22 (i.e., November 1, 2021), D-SIBS will be required to maintain a minimum risk-based TLAC ratio
and a minimum TLAC leverage ratio as set out in orders made under the Bank Act
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