Finance committee  Correct. This is all about aligning the risk to the appropriate return and ensuring that incentives are aligned for prudent management.

Finance committee  I'll go back to clarify my last remark. CDIC would be responsible for the redress process, as well as the overall management of that institution. There are also provisions for a third party assessor. It's not only the corporation itself, there would be a third party, and clearl

Finance committee  My team has been working on it for several years at Finance Canada together with our various supervisory agencies. The genesis of this work goes back to the G20 and the financial stability board and their work post financial crisis. A lot of the work that has been done over the

Finance committee  No, this legislation does not do that. The issue of a stress test is at the discretion of the Office of the Superintendent of Financial Institutions. During different parts of an economic cycle they may do stress tests, but the decision about whether to publicize them in any juri

Finance committee  They do. Our Canadian asset manager class, which includes pension funds and other asset managers, does hold an extensive exposure to the Canadian banking and financial sector. A lot of global asset managers also have exposure to the Canadian banking sector. If I understand the p

Finance committee  Generally speaking, that is true, in the sense that this legislation clearly pertains to the banking sector, but clearly, it has a feedback mechanism into the whole economy.

Finance committee  That's a good question. Thank you for it. In simple terms, a bank will issue different varieties of short-term and long-term debt securities to fund itself in the ordinary course where those creditors are funding the bank for a return over time and there are different types of i

Finance committee  Again, that's a very clear question. In ordinary course and in stressful times the value of a bank's market capitalization, which is the value of its shares, will fluctuate. In ordinary and in stressful times where there is profitability, headwinds that are fully transparent on a

Finance committee  Thank you for the question. Let me step back to explain. What is in the proposed amendments is the legislative framework for setting out how the conversion process would work and the authorities under the Minister of Finance, the Superintendent of Financial Institutions, as well

Finance committee  Yes, that's what I'm saying. Also, to clarify concerning what is included in the regulations, before we promulgate regulations, we need to consult with all of the industry. If a future government or Governor in Council wanted to change those regulations, the same rules would app

Finance committee  A systemically important bank is a categorization and a nomination by the Superintendent of Financial Institutions. The superintendent, under law, will have the power to nominate or declare which institutions are deemed to be systemically important. In Canada, the superintendent

Finance committee  Institutions that are deemed to be systemically important basically attract a whole host of additional supervisory and regulatory oversight, which includes additional capital, constraints on risk management, and overall supervision. Really, they attract even more than just the ad

Finance committee  On the timeline going forward, we have consulted intensely with the industry about having a path forward for banks that need to be compliant and effectively introduce these new instruments to the marketplace. The banks have asked us that question. Of course, pending parliamentary

Finance committee  No, they will not. The superintendent of OSFI will be moving concurrently, under his proviso, to stipulate the amount of losses or of incapacity in each bank. We expect that in the coming months. It would be a concurrent decision on the superintendent's part.

Finance committee  Yes, Mr. Chair. Thank you. While I provided an introductory comment at my previous experience on Tuesday, May 10, I thought a quick recap of part 4, division 5, of Bill C-15 would be helpful. The proposed amendments in part 4, division 5, provide a legislative framework for a b