Good afternoon.
Part 6, division 2 proposes amendments to the Canada Deposit Insurance Corporation Act to modernize and enhance the Canadian deposit insurance framework.
Deposit insurance is an important element of the financial safety net. It contributes to maintaining public confidence in the financial system by protecting depositors' savings in the unlikely event that a deposit-taking institution fails.
The proposed amendments modernize the scope of deposit insurance coverage to better reflect products currently offered in the market. For example, these amendments would remove travellers' cheques as an eligible deposit, as travellers cheques are no longer issued by CDIC member institutions. They would eliminate the five-year-term limit on GICs, as longer-term products are now available, and they would extend coverage to foreign currency deposits, which are widely used by Canadians.
These amendments would also improve the rules for trust deposit accounts by clarifying record-keeping requirements, which would facilitate more timely payouts in the event that a bank fails.
This suite of amendments seeks to modernize and clarify the deposit insurance framework so that it can contribute to meet its objectives of protecting depositors, promoting competition, and supporting financial stability.
Thank you.