Earnings & Dividend Growth Presentation
Bail-in
A statutory conversion power that allows for the permanent conversion of eligible shares
and liabilities of a non-viable bank into common shares, incremental to OSFI's conversion
of NVCC
Bail-in conversion would occur in the context of an open bank; the bank remains open and
operating and continuing to provide critical services to its customers
CDIC has flexibility to determine:
o Quantum of conversion - the portion of bail-in debt to be converted into common shares
o Timing of conversion – if it will take place immediately or over a period of time
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Process for converting - if conversion will take place in one or more steps
CDIC must adhere to certain parameters
。 Adequate recapitalization
o Order of conversion
o Equally ranking instruments
o Relative creditor hierarchy
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