Q1 2020 Fixed Income Investor Presentation
Office of the Superintendent of Financial Institutions
(OSFI) Non Viability Criteria
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In assessing whether an institution has ceased, or is about to cease, to be viable, the following criteria
can be considered, which may be mutually exclusive and should not be viewed as an exhaustive list¹
Whether the assets of the institution are, in the opinion of the Superintendent, sufficient to provide adequate
protection to the institution's depositors and creditors.
Whether the institution has lost the confidence of depositors or other creditors and the public. This may be
characterized by ongoing increased difficulty in obtaining or rolling over short-term funding.
Whether the institution's regulatory capital has, in the opinion of the Superintendent, reached a level, or is eroding in
a manner, that may detrimentally affect its depositors and creditors.
Whether the institution failed to pay any liability that has become due and payable or, in the opinion of the
Superintendent, the institution will not be able to pay its liabilities as they become due and payable.
Whether the institution failed to comply with an order of the Superintendent to increase its capital.
Whether, in the opinion of the Superintendent, any other state of affairs exists in respect of the institution that may
be materially prejudicial to the interests of the institution's depositors or creditors or the owners of any assets under
the institution's administration, including where proceedings under a law relating to bankruptcy or insolvency have
been commenced in Canada or elsewhere in respect of the holding body corporate of the institution.
Whether the institution is unable to recapitalize on its own through the issuance of common shares or other forms of
regulatory capital. For example, no suitable investor or group of investors exists that is willing or capable of investing
in sufficient quantity and on terms that will restore the institution's viability, nor is there any reasonable prospect of
such an investor emerging in the near-term in the absence of conversion or write-off of NVCC instruments. Further, in
the case of a privately-held institution, including a Schedule II bank, the parent firm or entity is unable or unwilling to
provide further support to the subsidiary.
1 Source: CAR Guideline, section 2.2.2, April 2018
http://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/CAR18_chpt2.aspx#ToC222CriteriatobeconsideredintriggeringconversionofNVCC
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CIBC Q1 2020 Fixed Income Investor Presentation
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