Canadian Bail-in Regime Update
Liquidation to Resolution Comparison
Liquidation Scenario
Bail-in debt ranks pari passu with all other senior
unsecured liabilities.
Resolution Scenario
Bail-in debt is partially or fully converted into common
shares.
No Creditor Worse Off
No creditor shall incur greater losses than under
insolvency proceedings. Bank shareholders and creditors
may seek compensation should they be left worse off as a
result of CDIC's actions to resolve a failed bank than they
would have been if the bank had been liquidated.
CIBCâ—‡
Loss Absorption Waterfall
Liquidation
Securitizations, Covered Bonds
Securitizations, Covered Bonds
Deposits
Legacy Senior Debt
Structured Notes
AT 1
Instruments
Tier 2
Derivatives
Legacy (not
NVCC)
Preferred
Common Equity
Shares
Note: Diagram shown is for illustrative purposes only. It is not to scale nor does it update the magnitude of the bail-in security to match the loss.
Bail-in Debt
Resolution
Deposits
Legacy Senior Debt
AT 1
Instruments
Bail-in Debt
Tier 2
Structured Notes
Legacy (not
NVCC)
Preferred
Shares
Common Equity
Derivatives
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