Investor Presentaiton
Canadian Bail-in Regulations: Key Features
Best in class approach
Post September 23, 2018, senior unsecured debt issued by Canadian DSIBS that is subject to bail-in is the
only format of issuance available¹ and is a single class of debt2 that is not subordinated to another class of
wholesale senior debt
Canadian bank term senior unsecured debt is not structurally, statutorily or contractually subordinated to
another class of senior liabilities and therefore ranks equally to deposits and other senior liabilities in
liquidation
Canada utilizes a statutory bail-in regime where, unlike the contractual regime of Canadian NVCC capital
instruments, bail-in conversion terms are not prescribed. CDIC retains flexibility to exercise the bail-in
power in a manner that is appropriate given the circumstances at the time and subject to certain
parameters.
In the remote event of non-viability, the no creditor worse off principle ensures that bailed-in senior
creditors do not incur greater losses through resolution than liquidation. The CDIC compensation regime
floors recovery at the liquidation value.
• The bail-in regime provides for a relative hierarchy of claims. Creditors receive common shares in
accordance with their relative rankings.
1 Excludes structured notes as defined in section 2(6) of the Bank Recapitalization (Bail-in) Conversion Regulations under the CDIC Act
2 Ranks pari passu with other forms of senior debt, except as otherwise prescribed by law and subject to the exercise of bank resolution powers
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