Capital Markets & Funding Strategies

How Bail-In Is Expected To Work When OSFI deems a bank has ceased to or may be about to cease to continue to be viable, it may trigger temporary takeover of the bank and carry out the bail-in conversion of NVCC capital and bail-in debt to common equity. CIBC . There are no write-down provisions in the framework • Conversion formula under many scenarios may result in investor gains 1. Pre-Loss Balance Sheet Other Senior Liabilities Bail-in Debt Loss 2. Loss Event 3. Post Bail-in Other Senior Liabilities Assets NVCC Sub-Debt Bail-in Debt Assets Assets NVCC Preferred Equity NVCC Sub-Debt NVCC Common Equity Preferred Equity Common Equity 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. Other Senior Liabilities Bail-in Debt Common Equity 42

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