Canadian banks are working hard with the Canada Deposit Insurance Corporation on their resolution plans. These plans are particularly complicated for those with significant cross-border activities, because home and host regulatory authorities need to develop a clearer sense of how financial institutions with global footprints would collaborate in stressful times.
With respect to Canada’s systemically important FMIs, this year’s federal budget included plans to implement a resolution framework, although it still needs to be operationalized. Rest assured, we will not be satisfied until all these plans meet an appropriate standard. For details, see “Backgrounder: Regulations to Implement the Bank Recapitalization (Bail-in) Regime,” Department of Finance Canada (June 2017).