The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that provides deposit insurance to eligible Canadian bank accounts. It was established in 1967 under the Canada Deposit Insurance Corporation Act.
CDIC's primary role is to protect depositors by insuring their eligible deposits in member financial institutions. If a member institution fails and is unable to repay the deposits, CDIC ensures that depositors receive their insured funds.
Under CDIC's deposit insurance, eligible deposits are protected up to a maximum coverage limit. Currently, the coverage limit is $100,000 per depositor, per insured category, at each member institution. Depositors are not required to apply for coverage as it is automatic for eligible deposits.
CDIC's member financial institutions include banks, trust companies, and loan companies that are federally regulated and meet certain criteria. Most Canadian banks are members of CDIC, and their deposits are insured.
CDIC's functions also include promoting and maintaining public confidence in the Canadian financial system, contributing to the stability of the system, and providing financial stability information and advice to other federal government authorities.
Overall, CDIC is a government entity responsible for protecting deposits in Canadian banks by providing insurance coverage, ensuring the stability of the financial system, and maintaining public confidence in the Canadian banking industry.
