CDIC Pleased With Auditor General's Special Examination

OTTAWA, ONTARIO--(Marketwire - April 6, 2010) - The Canada Deposit Insurance Corporation (CDIC) welcomes the findings of the 2010 Special Examination of CDIC conducted by the Office of the Auditor General of Canada (OAG). The OAG found that the Corporation has the key elements of a good governance framework; has clearly defined its strategic direction; regularly assesses risks presented by member institutions; and has the systems and practices to determine when to intervene and how, and the readiness to do so.

"CDIC is very pleased with the OAG's findings," said Bryan Davies, Chair of the Board of CDIC. "We have a strong team led by President and CEO Guy Saint-Pierre that is committed to ensuring that CDIC remains a best-practices Crown corporation, successfully fulfilling its mandate for the benefit of all Canadians".

The Special Examination, which is required for federal Crown corporations identified in the Financial Administration Act at least once every ten years, found no significant deficiencies and concluded that "CDIC has maintained systems and practices that provide it with the reasonable assurance that its assets are safeguarded and controlled, its resources are managed economically and efficiently, and its operations are carried out effectively".

View the Office of the Auditor General's Special Examination Report

CDIC is a federal Crown corporation that provides deposit insurance against the loss of deposits with its member institutions in the event of their failure. Eligible deposits are automatically insured from $1 to $100,000 per person at each member institution. The deposit insurance coverage limit is set by Parliament. CDIC members include Canadian banks, loan companies and trust companies that take deposits, as well as retail associations governed by the Cooperative Credit Associations Act that take deposits. CDIC is entirely funded by premiums assessed on its member institutions and does not receive federal tax dollars. As at April 30, 2009, CDIC insured $590 billion in deposits at its member institutions.