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.
These inspections, which are conducted using established procedures, manuals, and techniques, allow the Federal Reserve to review the organization's systems for identifying and managing risk across the organization and its various legal entities and to evaluate the overall financial strength of the organization.