Overview of Canadian Bail-in Regulations

Stable Economic Fundamentals Low unemployment rate reflects solid growth in Canadian economy UNEMPLOYMENT RATE 14 12 10 6 4 2 0 Canada - official U.S. Canada comparable to U.S. 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through January 2019. • . Solid economic growth and a gradual rebound in non-energy exports Household spending remains buoyant, underpinned by relatively low and stable unemployment, as well as low borrowing costs Population and labour force growth supported by increasing immigration Moderate inflation within Bank of Canada target band HEADLINE INFLATION 6 Canada Bank of Canada Target Inflation Band U.S. -2 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through December 2018 (Canada) and January 2019 (US). (%) LABOUR FORCE PARTICIPATION RATE 70 70 2222 % 62 60 66 64 68 Canada U.S. 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through January 2019. Scotiabank® 53

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