Covered Bond Program Overview
Comparison of Canadian and European Hierarchies in Bail-in Resolution
Layers of bail-inable senior debt instruments
European
Source: Commerzbank
CIBC
Loss absorption waterfall
Canada Bank Recapitalization
(Bail-in) Regulations
norm
Common Equity Tier 1
Common Equity Tier 1
Preferred Shares/ AT1 (PONV)
Additional Tier 1
Tier 2 (PONV)
Senior
(issued post Sep. 23, 2018)
Other excluded Liabilities**
* Sec. Obligations as well as Retail & SME Deposits <100k under Deposit Guarantee Scheme
** Sec. Obligations (e.g. Covered bonds) as well as CDIC Insured Deposits
Discretionary exclusions possible
Tier 2 (PONV)
Non-Preferred Senior
Preferred Deposits
(natural persons + micro + SMEs)
Excluded Liabilities*
Loss absorption waterfall
56
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