Scotiabank Strategic Priorities and Track Record
Canadian Regulatory Environment: Bail-In and TLAC
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October 2011; Financial Stability Board (FSB) drafted recommendations regarding resolution
regimes for global systemically important banks
2014; Canadian consultation process began. In 2016, amendments to CDIC Act, Bank Act and
other statutes were passed to allow for a bank recapitalization (bail-in) regime
Provided CDIC statutory power to convert specified eligible liabilities of domestic systemically important
banks (DSIBS) into common shares in the event such banks become non-viable
Extended existing CDIC powers with respect to managing the unlikely scenario of a bank failure
2017-2018; final bail-in regulations and the related Total Loss Absorbing Capital "TLAC" guideline
published for public consultation (ends July 17, 2017)
Expect regulations to be applied in early 2018
2021; TLAC compliance for DSIBS required by Nov 1, 2021 (i.e. Q1/2022)
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Minimum TLAC ratio of 21.5% of RWA and minimum TLAC leverage ratio of 6.75%
Banks likely to maintain buffers above the minimum requirements
Banks to begin reporting TLAC measures in November 2018
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