DEPOSIT INSURANCE IN CANADA - Recommendations for Reform :

These that the large majority of depositors across banks changes include the rapid spread of information are fully protected while leaving a substantial through social media and the adoption of digital proportion of the value of deposits unprotected.” technology by banks, which enables depositors to move funds with the swipe of a finger. [...] The Since the founding of the CDIC in 1967, there have emergence of AI-driven chatbots has the potential been several significant changes to the deposit to spread information and misinformation even insurance system. [...] • Increase the sensitivity/granularity of the Negative consequences under this scenario would risk rating by raising the number of premium be a higher cost to the system due to an increase categories from four to five in assessments across the board. [...] The goal of this paper is to stimulate discussion in the industry, including regulators, banking industry The events of March 2023 showed that mid-sized groups, and financial risk professionals, to examine banks have the potential to trigger systemic risk the outlined approaches and associated benefits and at the same time a G-SIB, fully compliant and drawbacks, and set the stage for future change. [...] Global Risk Institute 13 DEPOSIT INSURANCE IN CANADA - RECOMMENDATIONS FOR REFORM Our review of the structure of DI schemes in several peer countries and the variance between the CDIC framework and those of the provincial deposit insurance programs across Canada suggests the need to reform the Canadian system.