What is ‘Canadian Deposit Insurance Corporation – CDIC ‘
A crown corporation owned by the Canadian government that insures bank deposits up to C$100,000 per personal account held in member Canadian banks in they event that the financial institution fails. The corporation was formed under the Financial Administration Act and Canada Deposit Insurance Corporation Act in 1967. The CDIC is similar to the Federal Deposit Insurance Corporation in the United States.
Explaining ‘Canadian Deposit Insurance Corporation – CDIC ‘
Between 1967 and 2008, Canada experience the failure of 43 financial instutions, all of which were CDIC member banks. When using a bank in either in the United States or Canada, FDIC or CDIC membership is important to consider, as it provides depositors with some insurance against losing their savings.
Further Reading
- Bank moral hazard and the introduction of official deposit insurance in Canada – www.sciencedirect.com [PDF]
- Market valuation of bank assets and deposit insurance in Canada – www.jstor.org [PDF]
- Wealth and risk effects of adopting deposit insurance in Canada: Evidence of risk shifting by banks and trust companies – onlinelibrary.wiley.com [PDF]
- Market valuation and risk assessment of Canadian banks – ageconsearch.umn.edu [PDF]
- Comprehensive Early Warning System and the Experience of the Canada Deposit Insurance Corporation (CDIC) – ideas.repec.org [PDF]
- The deposit insurance system in canada: problems and proposals for change – www.jstor.org [PDF]
- Comparing depository institution difficulties in Canada, the United States, and the Nordic countries – www.jstor.org [PDF]
- The deposit insurer's role in maintaining financial stability – books.google.com [PDF]
