Canada Deposit Insurance Corporation Differential Premiums By-law

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SOR-99-120/FullText.html

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Canada Deposit Insurance Corporation Differential Premiums By-law

SOR/99-120CANADA DEPOSIT INSURANCE CORPORATION ACT
Registration 1999-03-10
Canada Deposit Insurance Corporation Differential Premiums By-lawThe Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(g)Footnote a and section 21Footnote b of the Canada Deposit Insurance Corporation Act, hereby makes the annexed Canada Deposit Insurance Corporation Differential Premiums By-law.

Return to footnote aR.S., c. 18 (3rd Supp.), s. 51
Return to footnote bS.C. 1996, c. 6, s. 27

March 3, 1999
The Minister of Finance, pursuant to subsection 21(3)Footnote a of the Canada Deposit Insurance Corporation Act, hereby approves the annexed Canada Deposit Insurance Corporation Differential Premiums By-law made by the Board of Directors of the Canada Deposit Insurance Corporation.
Ottawa, March 4, 1999Interpretation

1 (1) The definitions in this subsection apply in this By-law.

Act
Act means the Canada Deposit Insurance Corporation Act. (Loi)
CDIC standards
CDIC standards[Repealed, SOR/2005-116, s. 1]
Data Requirements By-law
Data Requirements By-law means the Canada Deposit Insurance Corporation Data and System Requirements By-law. (Règlement administratif sur les exigences en matière de données)
domestic systemically important bank
domestic systemically important bank means a bank designated as such by the Superintendent. (banque d’importance systémique nationale)
examiner

examiner means

(a) in respect of a federal member institution, the Superintendent; and

(b) in respect of a provincial member institution

(i) the Corporation or a person designated under paragraph 28(a) of the Act, or
(ii) the government of a province or the agent of the government of a province with whom the Corporation has entered into an agreement under section 38 of the Act. (inspecteur)

filing year
filing year means the calendar year in which a member institution is required to submit the documents referred to in section 15 for the purpose of determining the institution’s annual premium for the premium year beginning in that calendar year. (année de déclaration)
Guidelines for Banks
Guidelines for Banks means the Guidelines for Banks issued by the Superintendent under the Bank Act. (Lignes directrices à l’intention des banques)
guidelines for member institutions
guidelines for member institutions means the Guidelines for Banks or the Guidelines for Trust and Loan Companies, as applicable. (lignes directrices à l’intention des institutions membres)
Guidelines for Trust and Loan Companies
Guidelines for Trust and Loan Companies means the Guidelines for Trust and Loan Companies issued by the Superintendent under the Trust and Loan Companies Act. (Lignes directrices à l’intention des sociétés de fiducie et de prêt)
new member institution
new member institution[Repealed, SOR/2002-126, s. 1]
regulator

regulator means

(a) in respect of a federal member institution, the Superintendent; and
(b) in respect of a provincial member institution, the authority whose mandate in respect of the institution under the provincial law governing the institution is comparable to that of the Superintendent in respect of federal member institutions. (organisme de réglementation)

Reporting Form
Reporting Form means the reporting form set out in Part 2 of Schedule 2. (formulaire de déclaration)
Reporting Manual
Reporting Manual means the Manual of Reporting Forms and Instructions for Deposit-Taking Institutions issued by the Superintendent under the Bank Act and the Trust and Loan Companies Act. (Recueil des formulaires et des instructions)
subsidiary
subsidiary has the same meaning as in section 2 of the Bank Act. (filiale)

(2) Unless otherwise provided in this By-law, terms and expressions used in this By-law have the same meaning as in the guidelines for member institutions or in the Reporting Manual.
(3) For the purpose of determining the annual premium of a member institution for a premium year, a reference in this By-law to the guidelines for member institutions or the Reporting Manual is a reference to those guidelines or that Reporting Manual as amended up to and including October 31 preceding that premium year.

(4) For the purposes of sections 15 and 16 and Schedule 2, a reference, in respect of an amalgamating member institution, to the fiscal year ending in the year preceding the filing year means a reference to the period covered by its audited financial statements prepared as of the day preceding the date of its amalgamation where

(a) that institution does not have a fiscal year ending in the year preceding the filing year; and
(b) that amalgamation occurred after April 30 of the year preceding the filing year and on or before April 30 of the filing year.

(5) A reference in Schedule 2 or Schedule 3 to a multiple or ratio authorized or required in respect of a member institution by its regulator means a multiple or ratio authorized or required by that regulator in the course of the regulator’s duties.
(6) [Repealed, SOR/2006-47, s. 1]

SOR/2001-299, s. 37;
SOR/2002-126, s. 1;
SOR/2005-48, s. 1;
SOR/2005-116, s. 1;
SOR/2006-47, s. 1;
SOR/2009-12, s. 1;
SOR/2010-307, s. 1;
SOR/2015-75, ss. 1, 26(F).

Previous Version

Application

2 (1) Section 3 applies, for the purpose of subsection 23(1) of the Act, in respect of the calculation of the premium payable by a member institution referred to in that subsection.
(2) Sections 4 to 30 apply in respect of the calculation of the annual premium payable by a member institution for a full premium year.

SOR/2005-48, s. 2(E).

Annual Premium

3 For the purpose of paragraph 23(1)(a) of the Act, the annual premium for a member institution referred to in subsection 23(1) is equal to the greater of

(a) $5,000, and

(b) the result determined in accordance with the formula

A × B × C
where


is one third of one per cent, or any smaller proportion of one per cent that is fixed by the Governor in Council under subparagraph 23(1)(b)(ii) of the Act,


is an amount equal to the sum of the deposits referred to in paragraph 23(1)(b)(ii) of the Act, and


is the percentage set out in column 3 of Schedule 1 for the applicable premium year for premium category 1.

SOR/2015-75, s. 2.
Previous Version

4 (1) For the purpose of paragraph 21(1)(a) of the Act, the annual premium for each member institution is equal to the greater of

(a) $5,000, and

(b) subject to subsection (2), the result determined in accordance with the formula

A × B × C
where


is one third of one per cent, or any smaller proportion of one per cent that is fixed by the Governor in Council under paragraph 21(4)(b) of the Act,


is an amount equal to the sum of the deposits referred to in paragraph 21(4)(b) of the Act, and


is the percentage set out for the applicable premium year in column 3 of an item of Schedule 1 that corresponds to the premium category of the member institution set out in column 1 of that item.

(2) If a member institution is reclassified under section 6, the following formula shall be used to determine the result for the purposes of paragraph (1)(b):

(D × (E ÷ 365)) + (F × (G ÷ 365))
where


is the amount that would be the result under paragraph (1)(b) if C in that paragraph represented the percentage set out in column 3 of item 4 of Schedule 1;


is the number of days during the period beginning on May 1 of the filing year and ending on the day that the Corporation receives the declaration referred to in paragraph 7(1)(b) or the documents required by subsection 15(1) or section 16 from the member institution;


is the amount that would be the result under paragraph (1)(b) if C in that paragraph were the percentage set out in column 3 of an item of Schedule 1 for the premium category, set out in column 1 of that item, in which the member institution is reclassified; and


is the number of days during the period beginning on the day after the day that the Corporation receives the declaration referred to in paragraph 7(1)(b) or the documents required by subsection 15(1) or section 16 from the member institution and ending on April 30 of the year following the filing year referred to in E.

SOR/2000-38, s. 1;
SOR/2002-126, s. 2;
SOR/2015-75, s. 3.

Previous Version

4.1 [Repealed, SOR/2014-29, s. 1]
Previous Version

Determination of Premium Category

Classification

5 The Corporation shall, before July 15 of each premium year, classify

(a) every member institution, that is a subsidiary of one or more other member institutions, in the same premium category as the one other member institution that is not itself a subsidiary of a member institution; and
(b) subject to section 12, every other member institution in accordance with section 7 or 8, as the case may be.

6 (1) The Corporation shall review the classification of every member institution that has been classified in premium category 4 in accordance with section 12 if the institution submits to the Corporation on or before April 30 of the year following the filing year

(a) if the institution is an institution described in paragraph 12(1)(a), audited financial statements and a revised Reporting Form or a declaration that the audited financial statements confirm the informatioqn set out in the Reporting Form and no modifications are required to be made to the Reporting Form or to the returns and documents referred to in paragraphs 15(1)(c) and (e) as previously submitted; and
(b) if the institution is an institution described in paragraph 12(1)(b), the declaration referred to in paragraph 7(1)(b) or the documents required by paragraphs 15(1)(a) to (c) and (e) or section 16.

(2) The Corporation shall reclassify in accordance with section 7 or 8, as the case may be, a member institution referred to in subsection (1) if, based on the documents referred to in that subsection, such a reclassification is warranted.

SOR/2000-38, s. 2(F);
SOR/2002-126, s. 3;
SOR/2015-75, s. 4.

Previous Version

New Member Institutions

7 (1) A member institution shall be classified in premium category 1 as set out in column 1 of Schedule 1, if

(a) the member institution has been operating as a member institution for less than two fiscal years consisting of at least 12 months each, determined as of the end of the fiscal year ending in the year preceding the filing year; and
(b) not later than April 30 of the filing year, the member institution provides the Corporation with a declaration confirming that the member institution meets the condition referred to in paragraph (a).

(2) Subsection (1) does not apply to a member institution that

(a) is a subsidiary of a member institution that has been operating for at least two fiscal years consisting of at least 12 months each, determined as of the end of the fiscal year ending in the year preceding the filing year; or
(b) has a subsidiary that is a member institution that has been operating for at least two fiscal years consisting of at least 12 months each, determined as of the end of the subsidiary’s fiscal year ending in the year preceding the filing year.

(2.1) A member institution that is a bridge institution shall be classified in premium category 1 as set out in column 1 of Schedule 1.
(3) For the purpose of this section, if a member institution is formed by an amalgamation involving one or more member institutions, the amalgamated member institution shall be considered to have started operating on the same day as the amalgamating member institution that has been operating for the longest period of time.
(4) Despite subsection (1), a member institution referred to in that subsection shall be classified in premium category 2 as set out in column 1 of Schedule 1 if it is not in compliance with the Data Requirements By-law within 18 months after the day on which it becomes a member institution.

SOR/2002-126, s. 4;
SOR/2010-4, s. 1;
SOR/2010-307, s. 3.

Previous Version

Evaluation

8 A member institution, other than one classified in accordance with section 7, shall be classified in the premium category set out in column 1 of an item of Schedule 1 that corresponds to the total score for the institution determined in accordance with section 9, 10 or 11, as the case may be, and set out in column 2 of that item.
SOR/2002-126, s. 4.

8.1 (1) Subject to subsections 8.2(2) and (3), for any premium year that begins after 2013, a member institution, other than one classified in accordance with section 7, that was not in compliance with the Data Requirements By-law as of April 30 of the preceding premium year shall

(a) if it would otherwise be classified in premium category 1 for the premium year in question, be classified in premium category 2;
(b) if it would otherwise be classified in premium category 2 for the premium year in question, be classified in premium category 3; and
(c) if it would otherwise be classified in premium category 3 or 4 for the premium year in question, be classified in premium category 4.

(2) Subject to subsection 8.2(3), for any premium year that begins after 2014, a member institution, other than one classified in accordance with section 7, that was not in compliance with the Data Requirements By-law as of April 30 of each of the two preceding premium years shall

(a) if it would otherwise be classified in premium category 1 for the premium year in question, be classified in premium category 3; and
(b) if it would otherwise be classified in premium category 2, 3 or 4 for the premium year in question, be classified in premium category 4.

(3) For any premium year that begins after 2015, a member institution, other than one classified in accordance with section 7, that was not in compliance with the Data Requirements By-law as of April 30 of each of the three preceding premium years shall be classified in premium category 4, and, for each subsequent premium year during which it is not in compliance with that By-law, it shall also be classified in premium category 4.

SOR/2010-307, s. 4.

8.2 (1) For the premium year that begins in 2013, a member institution, other than one classified in accordance with section 7, that was not in compliance with the Data Requirements By-law as of June 30, 2013 shall

(a) if it would otherwise be classified in premium category 1 for that premium year, be classified in premium category 2;
(b) if it would otherwise be classified in premium category 2 for that premium year, be classified in premium category 3; and
(c) if it would otherwise be classified in premium category 3 or 4 for that premium year, be classified in premium category 4.

(2) For the premium year that begins in 2014, a member institution, other than one classified in accordance with section 7, that was not in compliance with the Data Requirements By-law as of June 30, 2013 and April 30, 2014 shall

(a) if it would otherwise be classified in premium category 1 for that premium year, be classified in premium category 3; and
(b) if it would otherwise be classified in premium category 2, 3 or 4 for that premium year, be classified in premium category 4.

(3) For the premium year that begins in 2015, a member institution, other than one classified in accordance with section 7, that was not in compliance with the Data Requirements By-law as of June 30, 2013, April 30, 2014 and April 30, 2015 shall be classified in premium category 4, and, for each subsequent premium year during which it is not in compliance with that By-law, it shall also be classified in premium category 4.

SOR/2010-307, s. 4.

9 In order to determine the total score of a member institution, other than a member institution referred to in section 10 or subsection 11(1), the Corporation shall add together the institution’s scores for quantitative factors assigned under sections 20 to 27 and qualitative factors and criteria assigned under sections 28 and 30.
SOR/2006-47, s. 2.

10 Subject to subsections 11(4) and 12(2), if a member institution that started operating as a member institution after April 30 of the year preceding the filing year would be classified in premium category 1 in accordance with section 7 if it did not have any subsidiaries of the type described in paragraph 7(2)(b), the Corporation shall assign to that institution the highest of the total scores assigned to each of its subsidiaries that

(a) on the day preceding the day that the institution started to operate as a member institution was not a subsidiary of another member institution; and
(b) is not a subsidiary of another member institution.

SOR/2002-126, s. 5.

11 (1) In order to determine the total score of a member institution formed by an amalgamation involving one or more member institutions that occurred after April 30 of the year preceding the filing year and on or before April 30 of the filing year, the Corporation shall add together the score assigned to the amalgamated member institution in respect of quantitative factors under subsection (2) and the score assigned to that institution in respect of qualitative factors and criteria under subsection (3).

(2) The following score shall be assigned to an amalgamated member institution referred to in subsection (1) in respect of quantitative factors:

(a) where the amalgamated member institution has a fiscal year ending in the year preceding the filing year, the sum of the scores assigned to that institution under sections 20 to 27; and

(b) where the amalgamated member institution does not have a fiscal year ending in the year preceding the filing year,

(i) if only one of the amalgamating institutions is a member institution, the sum of the scores assigned to that member institution under sections 20 to 27, and
(ii) if two or more of the amalgamating institutions are member institutions, the highest of the sums of the scores assigned to each of those amalgamating member institutions under sections 20 to 27.

(3) The score assigned to an amalgamated member institution referred to in subsection (1) in respect of qualitative factors and criteria shall consist of the sum of

(a) the score assigned to it under section 28 or, if no score can be assigned to it under that section, the score that would have been assigned under section 28 to the amalgamating member institution whose score in respect of quantitative factors was used to determine the score of the amalgamated member institution in respect of those factors for the purpose of subsection (2), if that section applied to that amalgamating member institution, and
(b) [Repealed, SOR/2006-47, s. 3]
(c) the score assigned to the amalgamated member institution under section 30.

(4) Where section 10 and this section both apply in respect of a member institution, this section shall prevail.

SOR/2006-47, s. 3.

12 (1) Despite sections 8, 8.1, 8.2, 9 and 11, a member institution shall be classified in premium category 4 as set out in column 1 of Schedule 1 if it

(a) has submitted a Reporting Form in accordance with paragraph 15(4)(a) or 16(2)(a), as the case may be, but has not, before July 1 of the filing year, submitted audited financial statements and a revised Reporting Form or a declaration that the audited financial statements confirm the information set out in the Reporting Form and no modifications are required to be made to the Reporting Form or to the returns and documents referred to in paragraphs 15(1)(c) and (e), as previously submitted; or
(b) has not, by April 30 of the filing year, submitted the declaration referred to in paragraph 7(1)(b) or the documents required by paragraphs 15(1)(a) to (c) and (e) or section 16.

(2) Subsection (1) applies in respect of a member institution where its subsidiaries are required to comply with the requirements of section 15 and one or more of those subsidiaries fails to do so.
(3) Subsection (1) does not apply to a member institution referred to in subsection 7(2.1).

SOR/2002-126, s. 6;
SOR/2010-4, s. 2;
SOR/2015-75, s. 5.

Previous Version

13 [Repealed, SOR/2002-126, s. 7]

Notification

14 (1) The Corporation shall, not later than July 15 of each premium year, notify every member institution of the premium category in which it has been classified under this By-law for that premium year.
(2) If the Corporation reviews the classification of a member institution based on information in respect of the institution that has come to its attention, including new or supplementary information submitted by the institution, and, as a result of that review, classifies the institution in a different premium category, the Corporation shall as soon as feasible notify the institution of that change.
(3) [Repealed, SOR/2015-75, s. 6]

SOR/2010-307, s. 5;
SOR/2015-75, s. 6.

Previous Version

Filing of Quantitative Information

15 (1) Subject to section 17, every member institution shall submit to the Corporation, not later than April 30 of every year,

(a) the Reporting Form, completed in accordance with the instructions set out in the Form;
(b) a list of its subsidiaries that are member institutions;
(c) the Basel III Capital Adequacy Reporting – Credit, Market and Operational Risk return, set out on the website of the Office of the Superintendent of Financial Institutions, completed in accordance with the guidelines for member institutions, as of the end of each of its two preceding fiscal years, that is, as of the end of the fiscal year ending in the year preceding the filing year and the end of the fiscal year ending in the second year preceding the filing year, unless the return has been previously submitted to the Corporation;
(d) [Repealed, SOR/2015-75, s. 7]

(e) the following documents set out in the Reporting Manual, namely,

(i) the Consolidated Statement of Income, Retained Earnings and AOCI, completed in accordance with that Manual, for its preceding fiscal year,
(ii) the Return of Impaired Assets, completed in accordance with that Manual as of the end of its preceding fiscal year,
(iii) the Consolidated Monthly Balance Sheet, completed in accordance with that Manual as of the end of its preceding fiscal year,
(iv) Section III of the Mortgage Loans Report, completed in accordance with that Manual as of the end of its preceding fiscal year,
(v) the Non-Mortgage Loans Report, completed in accordance with that Manual as of the end of its preceding fiscal year, and
(vi) the Pledging and REPOS Report, completed in accordance with that Manual as of the end of its preceding fiscal year; and

(f) the audited financial statements on which the information provided in the Reporting Form and the returns and documents referred to in paragraphs (c) and (e) are based, unless those financial statements have been submitted to the Corporation under the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law.

(2) The information provided by a member institution in the Reporting Form and in the returns and documents referred to in paragraphs (1)(c) and (e) must

(a) be based on audited financial statements prepared as of the end of the applicable fiscal year;
(b) be consistent with the financial statements referred to in paragraph (a); and
(c) be based on consolidated financial information as of the end of the applicable fiscal year.

(3) Unless otherwise provided in this By-law, financial information that is provided under this By-law shall be prepared in accordance with the International Financial Reporting Standards established by the International Accounting Standards Board, the primary source of which is, in Canada, the CPA Canada Handbook – Accounting.

(4) If the audited financial statements referred to in paragraph (1)(f) have not been issued by April 30 of the filing year, the member institution shall

(a) complete the Reporting Form and the returns and documents referred to in paragraphs (1)(c) and (e) based on its unaudited financial statements and submit them to the Corporation within the time required by subsection (1); and

(b) not later than July first of the filing year, submit to the Corporation its audited financial statements and

(i) provide the Corporation with a declaration that the audited financial statements confirm the information that was previously provided and that no modifications are required to be made to the Reporting Form or to the returns and documents referred to in paragraphs (1)(c) and (e) as previously submitted, or
(ii) submit a revised Reporting Form and the returns and documents referred to in paragraphs (1)(c) and (e) in revised form if they have been revised to conform with the audited financial statements.

SOR/2005-48, s. 3;
SOR/2007-26, s. 1;
SOR/2009-12, s. 2;
SOR/2010-4, s. 3;
SOR/2015-75, ss. 7, 26(F).

Previous Version

16 (1) Notwithstanding section 15 and subject to section 18, a member institution that has been formed by an amalgamation involving one or more member institutions that occurred after April 30 of the year preceding the filing year and on or before April 30 of the filing year and that does not have a fiscal year ending in the year preceding the filing year shall submit to the Corporation not later than April 30 of the filing year a list of its subsidiaries that are member institutions and

(a) for each amalgamating member institution that has a fiscal year ending in the year preceding the filing year, the documents referred to in subsection 15(1) other than the list referred to in paragraph 15(1)(b); and

(b) for each amalgamating member institution that does not have a fiscal year ending in the year preceding the filing year

(i) its audited financial statements prepared as of the day preceding the date of amalgamation, and
(ii) the Reporting Form and the returns referred to in paragraph 15(1)(c) and the documents referred to in paragraph 15(1)(e), which returns and documents must consist of information that is based on and consistent with the audited financial statements referred to in subparagraph (i), and must be based on consolidated financial information as of the day preceding the date of amalgamation.

(2) If an amalgamating member institution referred to in subsection (1) has not issued audited financial statements by April 30 of the filing year, the amalgamated member institution shall submit to the Corporation for that amalgamating member institution

(a) within the time required by subsection (1), the Reporting Form and the returns and documents required to be submitted by that subsection, which returns and documents must consist of information that is based on that institution’s unaudited financial statements; and

(b) not later than July first of the filing year, that institution’s audited financial statements and

(i) provide the Corporation with a declaration that the audited financial statements confirm the information that was previously provided and that no modifications are required to be made to the Reporting Form or to the returns and documents referred to in paragraphs 15(1)(c) and (e) as previously submitted, or
(ii) submit a revised Reporting Form and the returns and documents referred to in paragraphs 15(1)(c) and (e) in revised form if they have been revised to conform with the audited financial statements.

SOR/2015-75, ss. 8, 26(F).
Previous Version

17 Section 15 does not apply to a member institution

(a) that is a member institution classified in accordance with subsection 7(1) or (2.1);
(b) that is a subsidiary of another member institution, unless it is a subsidiary described in paragraphs 10(a) and (b) and a total score is assigned to that other member institution in accordance with section 10; or
(c) to which a total score is assigned in accordance with section 10.

SOR/2005-48, s. 4;
SOR/2010-4, s. 4;
SOR/2010-307, s. 6;
SOR/2015-75, s. 9.

Previous Version

18 Section 16 does not apply to a member institution that

(a) is a member institution classified in accordance with subsection 7(1) or (2.1); or
(b) is a subsidiary of another member institution.

SOR/2005-48, s. 5;
SOR/2010-4, s. 5.

Previous Version

Records

19 (1) Every member institution shall prepare and maintain records that accurately and fully describe and disclose the information on which the information provided in the Reporting Form is based.
(2) Every member institution shall retain the records referred to in subsection (1) in Canada for a period of at least six years after they are prepared.
(3) Where a member institution amalgamates with, or acquires all or substantially all of the assets of, one or more other member institutions, the institution that results from the amalgamation or acquisition shall retain the records of those other member institutions for a period of at least six years following the date of the amalgamation or acquisition.

Quantitative Factors

20 (1) The Corporation shall review the Reporting Form and other documents submitted by a member institution under section 15 or 16, and shall, where the Reporting Form and other documents have not been completed in accordance with this By-law, make whatever adjustments are necessary.
(2) The Corporation shall, in accordance with sections 21 to 27, assign to each member institution the scores that correspond to the results set out in the Reporting Form, reviewed and, if applicable, adjusted in accordance with subsection (1).

21 The Corporation shall assign to the member institution a score in respect of its capital adequacy that is equal to the sum of its scores for elements 1.2 and 1.4 of item 1 of the Reporting Form. To determine its scores for those elements, the Corporation shall compare the results obtained for the member institution in respect of its capital adequacy under elements 1.2 and 1.4 of that item with the range of results set out in Part 1 of Schedule 3.
SOR/2015-75, s. 10.
Previous Version

22 The Corporation shall compare the result obtained for a member institution in respect of the factor in item 2 of the Reporting Form with the range of results set out for that factor in column 2 of item 4 of Part 2 of Schedule 3 and shall assign to the institution the score set out in column 3 of that item that corresponds to that institution’s result.

23 (1) Subject to section 27, the Corporation shall compare the results obtained for a member institution in respect of each of the factors in items 3 and 4 of the Reporting Form with the range of results set out for those factors in items 5 and 6, respectively, in column 2 of Part 2 of Schedule 3 and shall assign to the institution the scores set out in column 3 of each of those items that correspond to that institution’s results, respectively.

(2) For the purpose of subsection (1), if an amalgamated member institution formed by an amalgamation involving only one member institution has been operating as a member institution for less than three fiscal years consisting of at least 12 months each, the scores assigned to the amalgamated member institution shall be based on the results obtained for the institution using the financial information

(a) of the amalgamated member institution for the fiscal years during which it has been operating as a member institution; and
(b) of the amalgamating member institution for the other applicable fiscal years.

SOR/2005-48, s. 6(E).

24 The Corporation shall compare the results obtained for a member institution in respect of each of the factors in items 5 and 6 of the Reporting Form with the range of results set out for those factors in column 2 of items 7 and 8, respectively, of Part 2 of Schedule 3 and shall assign to the institution the scores set out in column 3 of each of those items that correspond to that institution's results, respectively.
SOR/2005-48, s. 7.

24.1 (1) Subject to section 27, the Corporation shall compare the result obtained for a member institution in respect of the factor in item 7 of the Reporting Form with the range of results set out for that factor in column 2 of item 9 of Part 2 of Schedule 3 and shall assign to the institution the score set out in column 3 of that item that corresponds to that institution's result.

(2) For the purpose of subsection (1), if an amalgamated member institution formed by an amalgamation involving only one member institution has been operating as a member institution for less than four fiscal years consisting of at least 12 months each, the score assigned to the amalgamated member institution shall be based on the result obtained for the institution using the financial information

(a) of the amalgamated member institution for the fiscal years during which it has been operating as a member institution; and
(b) of the amalgamating member institution for the other applicable fiscal years.

SOR/2005-48, s. 7.

25 The Corporation shall assign the score for the factor in item 8 of the Reporting Form to a member institution that is not a domestic systemically important bank as follows:

(a) if the result of the threshold formula in item 8 of the Reporting Form is less than 10 per cent, the score to be assigned is 5; and
(b) if the result of the threshold formula in item 8 of the Reporting Form is equal to or greater than 10 per cent, the score to be assigned is the lowest of the scores set out for a type of mortgage loan in column “E” of an item of Table 8 to item 8 of the Reporting Form.

SOR/2015-75, s. 11.
Previous Version

25.1 The Corporation shall assign the score for the factor in item 8-1 of the Reporting Form to a member institution that is a domestic systemically important bank as follows:

(a) if the result of the threshold formula in element 8-1.1 of the Reporting Form is equal to or less than 100 per cent, the score to be assigned is 5; and

(b) if the result of the threshold formula in element 8-1.1 of the Reporting Form is greater than 100 per cent, the score to be assigned is

(i) 3, if the result of the formula in element 8-1.2 is less than 50 per cent; and
(ii) 0, if the result of the formula in element 8-1.2 is equal to or greater than 50 per cent.

SOR/2015-75, s. 12;
SOR/2016-11, s. 1.

Previous Version

26 The Corporation shall assign the score to a member institution for the factor in item 9 of the Reporting Form as follows:

(a) if the result of the threshold formula in item 8 of the Reporting Form is greater than 90 per cent, the score to be assigned is 5; and
(b) if the result of the threshold formula in item 8 of the Reporting Form is equal to or less than 90 per cent, the Corporation shall compare the results obtained for the member institution in respect of that factor with the range of results set out for that factor in column 2 of item 10 of Part 2 of Schedule 3 and shall assign to the institution the score set out in column 3 of that item that correspond to that institution’s results, respectively.

27 (1) If a member institution has been operating as a member institution for less than five fiscal years consisting of at least 12 months each, the combined score in respect of the factors in items 3, 4 and 7 of the Reporting Form shall be determined in accordance with the formula

(A ÷ 45) × 15
where


is the sum of the scores assigned to the member institution under sections 21, 22, 24, 25 and 26.

(2) If an amalgamated member institution formed by an amalgamation involving two or more member institutions has been operating as a member institution for less than three fiscal years consisting of a least 12 months each, the combined score in respect of the factors in items 3, 4 and 7 of the Reporting Form shall be determined in accordance with subsection (1).

(3) If a member institution has been operating as a member institution for five fiscal years consisting of at least 12 months each, the score in respect of the factors in item 7 of the Reporting Form shall be determined in accordance with the formula

(A ÷ 55) × 5
where


is the sum of the scores assigned to the member institution under sections 21, 22, 23, 24, 25 and 26.

(4) If an amalgamated member institution formed by an amalgamation involving two or more member institutions has been operating as a member institution for three fiscal years consisting of at least 12 months each, the score in respect of the factors in item 7 of the Reporting form shall be determined in accordance with subsection (3).

SOR/2002-126, s. 8;
SOR/2005-48, s. 8.

Qualitative Factors and Criteria

Examiner’s Rating

28 (1) For the purposes of this section, examiner’s rating in respect of a member institution means the rating on a scale of one to five that is assigned to the institution by the examiner in the course of carrying out the examiner’s duties.

(2) Subject to subsection (3), the Corporation shall assign to each member institution the score set out in column 2 of an item of Schedule 4 that corresponds to the examiner’s rating for the institution set out in column 1 of that item, which rating is the most recent of the following ratings that is available to the Corporation, namely,

(a) the examiner’s rating as of April 30 of the filing year;
(b) the most recent examiner’s rating assigned to the institution during the period beginning on May 1 of the year preceding the filing year and ending on April 29 of the filing year; and
(c) the examiner’s rating used for the evaluation of the member institution for the preceding premium year.

(3) If none of the examiner’s ratings referred to in subsection (2) is available to the Corporation for the member institution, the score to be assigned to the institution for the qualitative factor under this section shall be the result determined in accordance with the formula

(A ÷ 65) × 35
where


is the sum of the scores assigned to the member institution under sections 21 to 27 and 30.

SOR/2004-57, s. 1;
SOR/2006-47, s. 4;
SOR/2007-26, s. 2(E).

Previous Version

29 [Repealed, SOR/2006-47, s. 5]

29.1 [Repealed, SOR/2005-116, s. 2]

Other Information

30 (1) In this section, supervisory authority means an examiner, a regulator, any foreign authority that monitors the activities of financial institutions and a securities commission, a stock exchange or any other similar authority.

(2) The Corporation shall, based on information about the safety, soundness, financial condition and viability of each member institution, including such information that is produced by supervisory authorities, rating agencies, industry analysts or other experts, that has come to the attention of the Corporation, including information about the affiliates of the member institution, assign to the institution a score of

(a) 5 if, as of April 30 of the filing year, no information has come to its attention about circumstances that represent a threat to or compromise the safety, soundness, financial condition or viability of the institution;
(b) 3 if, as of April 30 of the filing year, information has come to its attention about circumstances that represent a threat to the safety, soundness, financial condition or viability of the institution; and
(c) 0 if, as of April 30 of the filing year, information has come to its attention about circumstances that compromise the safety, soundness, financial condition or viability of the institution.

Coming into Force

31 This By-law comes into force on March 31, 1999.

SCHEDULE 1(Sections 3, 4, 7, 8 and 12)

PREMIUM CATEGORIES

Item
Column 1
Column 2
Column 3

Premium Category
Total Score
Percentage

Premium Year Beginning in 2015
Premium Year Beginning in 2016
Premium Year Beginning in 2017
Premium Years Beginning in or After 2018

1
1
≥ 80
13.5%
16.5%
19.5%
22.5%

2
2
≥ 65 and < 80
27%
33%
39%
45%

3
3
≥ 50 and < 65
54%
66%
78%
90%

4
4
< 50
100%
100%
100%
100%

SOR/2015-75, s. 13.
Previous Version

SCHEDULE 2(Sections 1, 6, 12, 15, 16 and 20 to 27)

PART 1 Interpretation

1

(1) The following definitions apply in this Schedule:

Guidelines

Guidelines means

(a) in the case of a bank or a federal credit union, the Guidelines for Banks; and
(b) in the case of any other member institution, the Guidelines for Trust and Loan Companies. (Lignes directrices)

regulated deposit-taking institution
regulated deposit-taking institution means an entity that is supervised or regulated by a Canadian or foreign financial services or banking regulator and is authorized to accept deposits from the public. (institution de dépôt réglementée)

(2) For the purposes of item 7 of the Reporting Form, the value of assets acquired by a member institution, as a result of a merger or an acquisition described in that item, is the value of the assets on the date of their acquisition as reported in the consolidated financial statements of the member institution.

PART 2 Reporting Form

1 CAPITAL ADEQUACY MEASURES
1.1 Leverage Ratio (%)

Formula:(Tier 1 Capital) ÷ (Total Exposures) × 100

Complete the following:(1.1.1 — — — —) ÷ (1.1.2 — — — —) × 100 = 1.1 %

ElementsUse the instructions below to arrive at the elements of the formula.
Refer to the Leverage Requirements Return (LRR), Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

1.1.1 Tier 1 CapitalIndicate the Tier 1 Capital as set out in Section 1 – Leverage Ratio Calculation of the LRR.

1.1.2 Total ExposuresIndicate the total exposures as set out in Section 1 – Leverage Ratio Calculation of the LRR.

1.1.3 Authorized Leverage Ratio (%)Indicate the leverage ratio authorized by the institution’s regulator.
1.1.3 %

1.2 Leverage Ratio Score
Use the scoring grid below to determine the member institution’s leverage ratio score.

Range of Scores for Leverage Ratio
Score

Leverage ratio (1.1) is ≥ 110% of the leverage ratio authorized by the regulator (1.1.3)
10

Leverage ratio (1.1) is ≥ 100% but < 110% of the leverage ratio authorized by the regulator (1.1.3)
7

Leverage ratio (1.1) is < 100% of the leverage ratio authorized by the regulator (1.1.3)
0

1.2 Leverage Ratio Score

1.3 Tier 1 Capital Ratio (%)

Formula:(Net Tier 1 Capital) ÷ (Adjusted Tier 1 Capital Risk-weighted Assets) × 100

Complete the following:(1.3.1 — — — —) ÷ (1.3.2 — — — —) × 100 = 1.3 %

ElementsUse the instructions below to arrive at the elements of the formula.
Refer to the Basel III Capital Adequacy Reporting — Credit, Market and Operational Risk (BCAR) form, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

1.3.1 Net Tier 1 CapitalIndicate the net tier 1 capital as set out in Schedule 1 – Ratios and Assets to Capital Multiple Calculations of the BCAR form.

1.3.2 Adjusted Tier 1 Capital Risk-Weighted AssetsIndicate the adjusted Tier 1 capital risk-weighted assets as set out in Schedule 1 – Ratios and Assets to Capital Multiple Calculations of the BCAR form.

1.3.3 Minimum Required Tier 1 Capital RatioIndicate the minimum required Tier 1 capital ratio set by the regulator.

1.3.4 “All in” Capital Target Tier 1 Capital RatioIndicate the “all in” capital target Tier 1 capital ratio (including the capital conservation buffer and domestic systemically important bank surcharge as applicable) set by the regulator.

1.4 Tier 1 Capital Ratio Score
Use the scoring grid below to determine the member institution’s Tier 1 Capital Ratio score.

Range of Scores for Tier 1 Capital Ratio
Score

Tier 1 capital ratio (1.3) is > “all in” capital target Tier 1 capital ratio (1.3.4) set by the regulator for the member institution
10

Tier 1 capital ratio (1.3) is ≤ “all in” capital target Tier 1 capital ratio (1.3.4) set by the regulator for the member institution but > minimum Tier 1 capital ratio (1.3.3) required by the regulator
6

Tier 1 capital ratio (1.3) is < minimum Tier 1 capital ratio (1.3.3) required by the regulator
0

1.4 Tier 1 Capital Ratio Score

1.5 Capital Adequacy ScoreCalculate the capital adequacy score by completing the following formula.

Formula:Leverage Ratio Score + Tier 1 Capital Ratio Score = Capital Adequacy Score

Complete the following:1.2 + 1.4 = 1.5

1.5 Capital Adequacy Score

2 RETURN ON RISK-WEIGHTED ASSETS (%)

Formula:

Complete the following:(2.1 — — — —) ÷ (( 2.2 — — — — + 2.3 — — — — ) / 2) × 100 = 2 %

ElementsUse the instructions below to arrive at the elements of the formula.
Refer to the following documents:

(a) the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI, Reporting Manual, completed in accordance with that Manual as of the fiscal year ending in the year preceding the filing year; and
(b) the Basel III Capital Adequacy Reporting — Credit, Market and Operational Risk (BCAR) form, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

2.1 Net Income or LossThe net income or loss attributable to equity holders and non-controlling interests (the latter to be reported as a negative number) as set out in the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI.

2.2 Adjusted Tier 1 Capital Risk-Weighted Assets as of the End of the Preceding Filing YearIndicate the adjusted Tier 1 Capital risk-weighted assets as set out in the BCAR form.

2.3 Adjusted Tier 1 Capital Risk-Weighted Assets as of the End of the Fiscal Year Ending in the Second Year Preceding the Filing YearCalculate the adjusted Tier 1 Capital risk-weighted assets as of the end of the fiscal year ending in the second year preceding the filing year in the same manner as for element 2.2.
If the member institution does not have a fiscal year ending in the second year preceding the filing year, it must report “zero”, unless it is an amalgamated institution described below.
If the member institution is an amalgamated member institution formed by an amalgamation involving one or more member institutions and does not have a fiscal year ending in the second year preceding the filing year, it must report the same amount as for element 2.2.

Score
Use the scoring grid below to determine the member institution’s score.

Range of results
Score

Return on risk-weighted assets (2) is ≥ 1.15 %
5

Return on risk-weighted assets (2) is ≥ 0.75 % and < 1.15 %
3

Return on risk-weighted assets (2) is < 0.75 % or a negative number (where 2.1 is a negative number)
0

2.4 Return on risk-weighted assets score

3 MEAN ADJUSTED NET INCOME VOLATILITY

If a member institution has been operating as a member institution for less than five fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), it must indicate “N/A” (“not applicable”) for elements 3, 3.1, 3.2 and 3.13 and fill in any of elements 3.3 to 3.12 that apply to it.
If a member institution has been operating as a member institution for more than five fiscal years but less than 10 fiscal years consisting of at least 12 months each (with the last fiscal year of operation ending in the year preceding the filing year), it must complete the formula using the fiscal years during which it has been operating with the appropriate adjustment to the value of “n”.
If a member institution formed by an amalgamation involving only one member institution has been operating as a member institution for less than three fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), in addition to filling in the applicable elements as an amalgamated member institution, it must also fill in the applicable elements for the amalgamating member institution.
If a member institution formed by an amalgamation involving two or more member institutions has been operating as a member institution for less than three fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), it must indicate “N/A” (“not applicable”) for elements 3, 3.1, 3.2 and 3.13 and fill in any of elements 3.3 to 3.12 that apply to it.

Formula:(Standard deviation of the net income or loss) ÷ (Mean net income or loss)

Complete the following:(3.1 — — — —) ÷ (3.2 — — — —) = 3

ElementsUse the instructions below to arrive at the elements of the formula.

3.1 Standard deviation of the Net Income or LossDetermine the standard deviation of the net income or loss using the formula
If a member institution has been operating as a member institution for 12 or more fiscal years consisting of at least 12 months each, “n” will be equal to 10.
If a member institution has been operating as a member institution for seven or more but less than 12 fiscal years consisting of at least 12 months each, for each year that it is not operating the portion of the formula in the numerator referencing that year would be removed and “n” will be equal to the number of years that it has been so operating less 2 (e.g, if operating for 11 years, remove “(3.12 – 3.2)2” from the numerator and “n” will be equal to 9).
If a member institution has been operating as a member institution for six fiscal years consisting of at least 12 months each, “+ (3.7 – 3.2)2 + (3.8 – 3.2)2 + (3.9 – 3.2)2 + (3.10 – 3.2)2 + (3.11 – 3.2)2 + (3.12 – 3.2)2” must be removed from the formula and “n” will be equal to 4.
If a member institution has been operating as a member institution for five fiscal years consisting of at least 12 months each, “+ (3.6 – 3.2)2 + (3.7 – 3.2)2 + (3.8 – 3.2)2 + (3.9 – 3.2)2 + (3.10 – 3.2)2 + (3.11 – 3.2)2 + (3.12 – 3.2)2” must be removed from the formula and “n” will be equal to 3.

3.2 Mean Net Income or LossDetermine the mean net income or loss (the latter to be reported as a negative number) using the formula
((3.3 + 3.4 + 3.5 + 3.6 + 3.7 + 3.8 + 3.9 + 3.10 + 3.11 + 3.12)) ÷ n
If a member institution has been operating as a member institution for 12 or more fiscal years consisting of at least 12 months each, “n” will be equal to 10.
If a member institution has been operating as a member institution for seven or more but less than 12 fiscal years consisting of at least 12 months each, the portion of the formula in the numerator referencing the years that it was not operating is to be removed and “n” will be equal to the number of years that it has been so operating less 2 (e.g., if operating for 11 years, “+ 3.12” is removed from the numerator and “n” will be equal to 9).
If a member institution has been operating as a member institution for six fiscal years consisting of at least 12 months each, “+ 3.7 + 3.8 + 3.9 + 3.10 + 3.11 + 3.12” must be removed from the formula and “n” will be equal to 4.
If a member institution has been operating as a member institution for five fiscal years consisting of at least 12 months each, “+ 3.6 + 3.7 + 3.8 + 3.9 + 3.10 + 3.11 + 3.12” must be removed from the formula and “n” will be equal to 3.

Net income or loss (the latter to be reported as a negative number) after tax for each of the last 10 fiscal years.Indicate the net income or loss as determined for element 2.1 for the fiscal year ending in the year preceding the filing year. 3.3
Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.3. 3.4
Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.4. 3.5
Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.5. 3.6
Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.6. 3.7
Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.7. 3.8
Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.8. 3.9
Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.9. 3.10
Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.10. 3.11
Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.11. 3.12
Indicate the number of fiscal years that the member institution has been operating as a member institution (if less than 12).
A member institution must report net income or loss for the last 10 fiscal years.
If a member institution has been operating as a member institution for less than three fiscal years of at least 12 months each and it is a member institution formed by an amalgamation involving only one member institution, it must report the net income or loss of the amalgamating member institution for the three fiscal years or less preceding the amalgamation, as applicable.
If a member institution has been operating as a member institution for less than five fiscal years of at least 12 months each, it must report “N/A” (“not applicable”) for the elements corresponding to the fiscal years for which it was not operating as a member institution.

Score
Use the scoring grid below to determine the member institution’s score.

Range of results
Score

Mean adjusted net income volatility (3) is ≥ 0 and ≤ 0.5
5

Mean adjusted net income volatility (3) is > 0.5 and ≤ 1.25
3

Mean adjusted net income volatility (3) is > 1.25
0

Mean adjusted net income volatility (3) is negative or the mean net income or loss (3.2) is “zero”
0

3.13 Mean adjusted net income volatility score

4 STRESS-TESTED NET INCOME
If a member institution has reported “N/A” (“not applicable”) in element 3.13, it must report “N/A” for elements 4A, 4B and 4.3.

Formulas:(Net income or loss) – (1 × Standard deviation of the net income or loss) = Stress-tested net income using one standard deviation
(Net income or loss) – (2 × Standard deviation of the net income or loss) = Stress-tested net income using two standard deviations

Complete the following:Stress-tested net income using one standard deviation:
4.1 – (1 × 4.2) = 4A
Stress-tested net income using two standard deviations:
4.1 – (2 × 4.2 ) = 4B

ElementsUse the instructions below to arrive at the elements of the formulas.

4.1 Net Income or LossNet income or loss as determined for element 2.1.

4.2 Standard deviation of the Net Income or LossThe standard deviation of the net income or loss as determined for element 3.1.

Score
Use the scoring grid below to determine the member institution’s score.

Range of results
Score

Stress-tested net income using two standard deviations (4B) is ≥ 0
5

Stress-tested net income using one standard deviation (4A) is ≥ 0, but stress-tested net income using two standard deviations (4B) is < 0
3

Stress-tested net income using one standard deviation (4A) is < 0
0

4.3 Stress-tested net income score

5 EFFICIENCY RATIO (%)

Formula:(Total non-interest expenses) ÷ (Net interest income + Non-interest income) × 100

Complete the following:(5.1 — — — —) ÷ (5.2 — — — — + 5.3 — — — — ) × 100 = 5 %

ElementsUse the instructions below to arrive at the elements of the formula.
Refer to the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI, Reporting Manual, completed in accordance with that Manual for the fiscal year ending in the year preceding the filing year.

5.1 Total Non-Interest ExpensesIndicate the total non-interest expenses, as set out in the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI, less any charges for impairment included in that total.

5.2 Net Interest IncomeDetermine the net interest income by adding (a) and (b):

(a) Net interest income as set out in the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI

(b) Taxable equivalent adjustment (if any)

Total (insert as element 5.2 of the formula)

5.3 Non-Interest IncomeDetermine the non-interest income by adding (a) and (b):

(a) Non-interest income as set out in the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI

(b) Taxable equivalent adjustment (if any)

Total (insert as element 5.3 of the formula)

Score
Use the scoring grid below to determine the member institution’s score.

Range of results
Score

Efficiency ratio (5) is ≥ 0 or ≤ 65%
5

Efficiency ratio (5) is > 65% and ≤ 85%
3

Efficiency ratio (5) is > 85% or a negative number
0

5.4 Efficiency ratio score

6 NET IMPAIRED ASSETS TO TOTAL CAPITAL (%)

Formula:(Net impaired on-balance sheet assets + Net impaired off-balance sheet assets) ÷ (Total Capital) × 100

Complete the following:(6.1 — — — — + 6.2 — — — —) ÷ (6.3 — — — —) × 100 = 6 %

ElementsUse the instructions below to arrive at the elements of the formula.
Refer to the following documents:

(a) the Return of Impaired Assets, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year; and
(b) the Basel III Capital Adequacy Reporting — Credit, Market and Operational Risk (BCAR) form, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

6.1 Net Impaired On-Balance Sheet AssetsIndicate the net impaired on-balance sheet assets as set out for the total of the column “Net Impaired Amount” in the Return of Impaired Assets. If the result is negative, report “zero”.

6.2 Net Impaired Off-Balance Sheet AssetsCalculate the net impaired off-balance sheet assets by subtracting the total of the column “Individual allowance for impairment” in Table 6A from the total of the column “Credit equivalent” in that Table. If the result is negative, report “zero”.

6.3 Total CapitalIndicate the total capital set out in Schedule 1 of the BCAR form.

Table 6A — Impaired Off-balance Sheet Assets
(Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)

Impaired Instruments

Notional principal amount
a

Credit conversion factor
b

Credit equivalent
(a × b)

Individual allowance for impairment

Direct credit substitutes – excluding credit derivatives

100%

Transaction-related contingencies

50%

Short-term self-liquidating trade-related contingencies

20%

Sale & repurchase agreements

100%

Forward asset purchases

100%

Forward forward deposits

100%

Partly paid shares and securities

100%

NIFs & RUFs

50%

Undrawn commitments – excluding securitization exposure
Standardized Approach

0%

20%

50%

Advanced IRB Approach

Footnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)**

Footnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)**

Footnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)**

Impaired OTC Derivative Contracts

Credit derivative contracts

Footnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)*

Interest rate contracts

Footnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)*

Foreign exchange & gold contracts

Footnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)*

Equity-linked contracts

Footnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)*

Precious metals (other than gold) contracts

Footnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)*

Other commodity contracts

Footnote for (Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)*

Total

Use these totals to calculate element 6.2

Return to footnote *Fill in the total amounts of the contracts under the heading “Credit equivalent amount” from Table 6B.
Return to footnote **Refer to the Capital Adequacy Requirements Guideline to determine the applicable credit conversion factor.

Table 6B — Impaired OTC Derivative Contracts
(Complete Table 6B as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 39 - Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 40 - Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements Guideline of the Guidelines.)

Impaired OTC Derivative Contracts (in thousands of dollars)
Credit derivative contracts
Interest rate contracts
Foreign exchange & gold contracts
Equity-linked contracts
Precious metals (other than gold) contracts
Other commodity contracts

Replacement cost (market value)

a. Contracts held for trading purposes
(all contracts before permissible netting)

Gross positive replacement cost

Gross negative replacement cost

b. Contracts held for other than trading
(all contracts before permissible netting)

Gross positive replacement cost

Gross negative replacement cost

c. Contracts subject to permissible netting
(included in a and b above)

Gross positive replacement cost

Gross negative replacement cost

Net positive replacement cost

d. Total contracts – after permissible netting

Gross positive replacement cost

Potential credit exposure

Contracts not subject to permissible netting

Contracts subject to permissible netting

Credit equivalent amount
(after taking into account collateral and guarantees)

Contracts not subject to permissible netting

Contracts subject to permissible netting

Total Impaired OTC Derivative Contracts (carry forward to “Credit equivalent” column in Table 6A)

Score

Use the scoring grid below to determine the member institution’s score.

Range of results
Score

Net impaired assets to total capital (6) is < 20%
5

Net impaired assets to total capital (6) is ≥ 20% and < 40%
3

Net impaired assets to total capital (6) is ≥ 40%
0

6.4 Net impaired assets to total capital score

7 THREE-YEAR MOVING AVERAGE ASSET GROWTH (%)

If a member institution has been operating as a member institution for less than six fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), it must indicate “N/A” (“not applicable”) for elements 7 and 7.5 but still fill in any of elements 7.1 to 7.4 that apply to it.
If a member institution formed by an amalgamation involving only one member institution has been operating as a member institution for less than four fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), in addition to filling in the applicable elements as an amalgamated member institution, it must also fill in the applicable elements for the amalgamating member institution.
If a member institution formed by an amalgamation involving two or more member institutions has been operating as a member institution for less than four fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), it must indicate “N/A” (“not applicable”) for elements 7 and 7.5 but still fill in any of elements 7.1 to 7.4 that apply to it.
If a member institution acquires assets in the fiscal year ending in the year preceding the filing year as a result of a merger with or the acquisition of a regulated deposit-taking institution or as a result of the acquisition of the deposit-taking business of a regulated institution, and the value of those acquired assets on the date of their acquisition exceeds 15% of the value of the consolidated assets of the member institution immediately before that merger or acquisition, the member institution must include the value of those acquired assets in elements 7.1 to 7.3.

Formula:

Complete the following:

ElementsUse the instructions below to arrive at the elements of the formula.
Refer to Section I of the Consolidated Monthly Balance Sheet, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year indicated under the heading “Assets for Years 1 to 4” below and to the Basel III Capital Adequacy Reporting — Credit, Market and Operational Risk (BCAR) form, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year indicated under the heading “Assets for Years 1 to 4” below.

Assets for Years 1 to 4The total of

(a) the amount of net on- and off-balance sheet assets set out in Schedule 1 of the BCAR form plus the transitional adjustment, if any, for grandfathered treatment of certain assets not derecognized under IFRS set out in Schedule 45 of the BCAR form;
(b) the total of the amounts set out in the column “Total” for Securitized Assets – Unrecognized – Institution’s own assets (bank originated or purchased) – Traditional securitizations of Section I – Memo Items of the Consolidated Monthly Balance Sheet; and
(c) if applicable, the value of assets, acquired by the member institution in the fiscal year ending in the year preceding the filing year as a result of a merger or acquisition referred to in the fourth paragraph under the heading “7. THREE-YEAR MOVING AVERAGE ASSET GROWTH (%)”, for years 1, 2 and 3 below, if the value of those assets on the date of their acquisition exceeds 15% of the value of the consolidated assets of the member institution immediately before that merger or acquisition.

Year 1:
as of the end of the fiscal year ending in the fourth year preceding the filing year

7.1

Year 2:
as of the end of the fiscal year ending in the third year preceding the filing year
7.2

Year 3:
as of the end of the fiscal year ending in the second year preceding the filing year
7.3

Year 4:
as of the end of the fiscal year ending in the first year preceding the filing year
7.4

Indicate the number of fiscal years consisting of at least 12 months that the member institution has been operating as a member institution (if less than six).

A member institution must report assets for the last four fiscal years.
If a member institution has been operating as a member institution for less than four fiscal years of at least 12 months each and it is a member institution formed by an amalgamation involving only one member institution, it must report the assets of the amalgamating member institution for the four fiscal years or less preceding the amalgamation, as applicable.
If a member institution has been operating as a member institution for less than four fiscal years consisting of at least 12 months each, it must indicate “N/A” (“not applicable”) for the elements corresponding to the fiscal years for which it was not operating as a member institution.
Score
Use the scoring grid below to determine the member institution’s score.

Range of Results
Score

Three-year moving average asset growth is ≤ 15% (including negative results)
5

Three-year moving average asset growth is > 15% and ≤ 40%
3

Three-year moving average asset growth is > 40%
0

7.5 Three-year moving average asset growth score

8 REAL ESTATE ASSET CONCENTRATIONA member institution that is a domestic systemically important bank is not required to complete item 8 and will insert “N/A” as its score for element 8.5. It must complete element 8-1.

Threshold Formula:(Total Mortgage Loans) ÷ (Total Mortgage Loans + Total Non-Mortgage Loans + Total Securities + Total Acceptances) × 100

Complete the following:(8.1 — — — —) ÷ (8.1 — — — — + 8.2 — — — — + 8.3 — — — — + 8.4 — — — —) × 100 = %

ElementsUse the instructions below to arrive at the elements of the threshold formula.
Refer to Section I of the Consolidated Monthly Balance Sheet, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

8.1 Total Mortgage LoansThe total mortgage loans is the total of the amounts set out in the column “Total” describing Mortgages, less allowance for impairment of Section I — Assets of the Consolidated Monthly Balance Sheet, before deducting any allowance for impairment.

8.2 Total Non-Mortgage LoansThe total non-mortgage loans is the total of the amounts set out in the column “Total” describing Non-Mortgage Loans, less allowance for impairment of Section I – Assets of the Consolidated Monthly Balance Sheet, before deducting any allowance for impairment.

8.3 Total SecuritiesThe total securities is the total of the amounts set out in the column “Total” for Securities set out in Section I — Assets of the Consolidated Monthly Balance Sheet.

8.4 Total AcceptancesThe total acceptances is the total of the amounts set out in the column “Total” for Customers liability under acceptances, less allowance for impairment set out in Section I — Assets of the Consolidated Monthly Balance Sheet.

If the result of the threshold formula is less than 10%, score five for element 8.5 and do not complete the rest of section 8.
If that result is greater than or equal to 10%, complete the rest of section 8.

Fill in Table 8 using the definitions and instructions below.Refer to Section III of the Mortgage Loans Report, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year. A member institution may complete these calculations using the information reported in the Mortgage Loans Report filed at its year-end or, if not filed at its year-end, at the calendar quarter-end preceding that year-end.

Fill in Table 8 for each of the following types of mortgages.

Residential Properties Mortgage LoansMortgage loans of this type, secured by properties located in Canada, are to be classified in accordance with the Reporting Manual.
Calculate the total mortgage loans of this type by adding together the amounts set out for “Total Residential” in the columns “Insured Gross Mortgage Loans Outstanding” and “Uninsured Gross Mortgage Loans Outstanding”, respectively, in the first table of Section III of the Mortgage Loans Report, before deducting any allowance for impairment.

Land Development Mortgage LoansMortgage loans of this type, secured by properties located in Canada, are to be classified in accordance with the Reporting Manual.
Calculate by adding together

(a) the total land banking and development mortgage loans determined by adding together the amounts set out for Land Banking and Development in the columns “Insured Gross Mortgage Loans Outstanding” and “Uninsured Gross Mortgage Loans Outstanding”, described in the first table of Section III of the Mortgage Loans Report, before deducting any allowance for impairment, and
(b) the total residential interim construction mortgage loans determined by adding together the amounts set out for “Of Which Residential Interim Construction Mortgages” in the columns “Insured Gross Mortgage Loans Outstanding” and “Uninsured Gross Mortgage Loans Outstanding”, described in the first table of Section III of the Mortgage Loans Report, before deducting any allowance for impairment.

Hotel and Motel Properties Mortgage LoansMortgage loans of this type, secured by properties located in Canada, are to be classified in accordance with the Reporting Manual.
Calculate the total mortgage loans of this type by adding together the amounts set out for Hotels/Motels in the columns “Insured Gross Mortgage Loans Outstanding” and “Uninsured Gross Mortgage Loans Outstanding”, respectively, in the first table of Section III of the Mortgage Loans Report, before deducting any allowance for impairment.

Industrial Properties Mortgage LoansMortgage loans of this type, secured by properties located in Canada, are to be classified in accordance with the Reporting Manual.
Calculate the total mortgage loans of this type by adding together the amounts set out for Industrial Buildings in the columns “Insured Gross Mortgage Loans Outstanding” and “Uninsured Gross Mortgage Loans Outstanding”, respectively, in the first table of Section III of the Mortgage Loans Report, before deducting any allowance for impairment.

Single Family Dwelling Properties Mortgage LoansMortgage loans of this type, secured by properties located in Canada, are to be classified in accordance with the Reporting Manual.
Calculate the total mortgage loans of this type by adding together the amounts set out for Single Detached and Condominiums in the columns “Insured Gross Mortgage Loans Outstanding” and “Uninsured Gross Mortgage Loans Outstanding”, respectively, in the first table of Section III of the Mortgage Loans Report, before deducting any allowance for impairment.

Second or Subsequent Mortgage LoansMortgage loans of this type, secured by properties located in Canada, are to be classified in accordance with the Reporting Manual.
The total mortgage loans of this type is the amount set out for Second and Subsequent Mortgages in the column “Amounts Outstanding” in the second table of Section III of the Mortgage Loans Report, before deducting any allowance for impairment.

Real Estate Under Power of Sale or Foreclosed PropertiesProperties of this type, located in Canada, are to be classified in accordance with the Reporting Manual.
Calculate by adding together

(a) for foreclosed properties located in Canada, the amount set out in the column “Total” for Foreclosed long-lived assets acquired in the liquidation of a loan — Held for sale of Section I — Memo Items of the Consolidated Monthly Balance Sheet, and
(b) for real estate under power of sale, the amount set out in the column “Total” for Power of Sale Loans related to Real Estate of Section I — Memo Items of the Consolidated Monthly Balance Sheet.

Table 8

A
B
C
D
E

Type
Amount

Percentage of Total Mortgage Loans(Amount from Column B ÷ Total Mortgage LoansFootnote for *) x 100

Range of Results

ScoreFootnote for **

Residential Properties Mortgage Loans

< 50%  = 0
≥ 50% and < 75%  = 3
≥ 75%  = 5

Land Development Mortgage Loans

> 10%  = 0
> 5% and ≤ 10%  = 3
≤ 5%  = 5

Hotel and Motel Properties Mortgage Loans

> 10%  = 0
> 5% and ≤ 10%  = 3
≤ 5%  = 5

Industrial Properties Mortgage Loans

> 15%  = 0
> 10% and ≤ 15%  = 3
≤ 10%  = 5

Single Family Dwelling Properties Mortgage Loans

< 35%  = 0
≥ 35% and < 50%  = 3
≥ 50%  = 5

Second or Subsequent Mortgage Loans

> 10%  = 0
> 5% and ≤ 10%  = 3
≤ 5%  = 5

Real Estate Under Power of Sale or Foreclosed Properties

> 8%  = 0
> 5% and ≤ 8%  = 3
≤ 5%  = 5

Return to footnote *“Total Mortgage Loans” used in the calculation in column C must correspond to the amount of the Total Mortgage Loans determined for element 8.1.
Return to footnote **Fill in the score in column E for a type of mortgage loan or property set out in column A that corresponds to the percentage set out in column C, in accordance with the appropriate range set out in column D.

Score

Use the scoring grid below to determine the member institution’s score.

Results
Score

Lowest score in Column E of Table 8 is 0
0

Lowest score in Column E of Table 8 is 3
3

All scores in Column E of Table 8 are 5
5

Result of the threshold formula is < 10% of Total Assets
5

8.5 Real Estate Asset Concentration Score

8-1 ASSET ENCUMBRANCE MEASUREOnly a member institution that is a domestic systemically important bank must complete item 8-1. All other member institutions are to insert “N/A” for item 8-1.3.

8-1.1 Unencumbered Asset Concentration

Threshold Formula:(Total Liabilities – (Subordinated Debt + Covered Bonds Liabilities + Securitization Liabilities + Repos + Shorts)) ÷ (Total Assets – (Impairment + Total Pledged Assets)) × 100

Complete the following:(8-1.1.1 — — — – (8-1.1.2 — — — + 8-1.1.3 — — — + 8-1.1.4 — — — + 8-1.1.5 — — — + 8-1.1.6 — — — )) ÷ (8-1.1.7 — — — – (8-1.1.8 — — — + 8-1.1.9 — — — )) × 100 =
8-1.1 %

ElementsUse the instructions below to arrive at the elements of the formula.
Refer to the Consolidated Monthly Balance Sheet and Section I of the Pledging and Repos Report, Reporting Manual, all completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.

8-1.1.1 Total LiabilitiesThe total liabilities is calculated by deducting from the amount set out in the column “Total” for Total Liabilities and Shareholders’ Equity the amounts included as shareholders’ equity in Section II – Liabilities of the Consolidated Monthly Balance Sheet.

8-1.1.2 Subordinated DebtThe total subordinated debt is the amount set out in the column “Total” for Subordinated Debt in Section II – Liabilities of the Consolidated Monthly Balance Sheet.

8-1.1.3 Covered Bonds LiabilitiesThe covered bonds liabilities is the total of the amounts set out in the column “Total” for Selected information on covered bonds liabilities in Section II – Memo Items of the Consolidated Monthly Balance Sheet.

8-1.1.4 Securitization LiabilitiesThe securitization liabilities is the total of the amounts set out in the column “Total” for Securitization notes payable (institution’s own assets) and Securitization notes payable (third party assets) as set out for the Mortgages and Loans Payable in Section II – Memo Items of the Consolidated Monthly Balance Sheet.

8-1.1.5 ReposThe obligations related to assets sold under repurchase agreements is the amount set out in the column “Total” for Obligations related to assets sold under repurchase agreements in Section II – Liabilities of the Consolidated Monthly Balance Sheet.

8-1.1.6 ShortsThe obligations related to borrowed securities is the amount set out in the column “Total” for Obligations related to borrowed securities in Section II – Liabilities of the Consolidated Monthly Balance Sheet.

8-1.1.7 Total AssetsThe total assets is the amount set out in the column “Total” for Total assets in Section I – Assets of the Consolidated Monthly Balance Sheet.

8-1.1.8 ImpairmentImpairment is the total amount set out in the column “Gross Impaired Assets” less the aggregate of the total amount set out in the column “Collective Allowance” and the total amount set out in the column “Individual Allowance” under Impaired Assets and Allowances in Section I – Memo Items of the Consolidated Monthly Balance Sheet.

8-1.1.9 Total Pledged AssetsThe total pledged assets is the total of the amounts set out in the column “OUTSTANDING END OF PERIOD – CONSOLIDATED ENTITY” for TOTAL and REPURCHASE AGREEMENTS (REPOS) of SECTION I – PLEDGING AND REPURCHASE AGREEMENTS of the Pledging and Repos Report.

If the result of the threshold formula is equal to or less than 100%, score five for element 8-1.3 and do not complete the rest of item 8-1.
If the result is greater than 100%, complete the rest of item 8-1.

8-1.2 Pledged Asset Ratio

Formula:(Total Pledged Assets) ÷ (Total Assets) × 100

Complete the following:(8-1.2.1 — — — —) ÷ (8-1.2.2 — — — —) × 100 = 8-1.2%

8-1.2.1 Total Pledged AssetsIndicate the total pledged assets as determined for element 8-1.1.9.

8-1.2.2 Total AssetsIndicate the total assets as determined for element 8-1.1.7.

Score
Use the scoring grid below to determine the member institution’s score.

Range of results
Score

Result of the threshold formula in 8-1.1 is ≤100%
5

Result of the formula in 8-1.2 is < 50%
3

Result of the formula in 8-1.2 is ≥ 50%
0

8-1.3 Asset Encumbrance Measure Score

9 AGGREGATE COMMERCIAL LOAN CONCENTRATION RATIO (%)

If the result of the threshold formula in section 8 is greater than 90%, indicate a score of five for element 9.4 and do not complete section 9.
If the result of the threshold formula in section 8 is equal to or less than 90%, or the member institution is a domestic systemically important bank, complete section 9.

Formula:(Aggregate Commercial Loan Concentration) ÷ (Total Capital) × 100

Complete the following:(9.1 — — — —) ÷ (9.2 — — — —) × 100 = 9 %

ElementsRefer to the Non-Mortgage Loans Report, Reporting Manual, completed in accordance with that Manual. Use the instructions below to arrive at the elements of the formula. A member institution may complete these calculations using the information reported in the Non-Mortgage Loans Report filed at its year-end or, if not filed at its year-end, at the calendar quarter-end preceding that year-end.

9.1 Aggregate Commercial Loan ConcentrationThe aggregate commercial loan concentration is the total of column B in Table 9, expressed in thousands of dollars.

9.2 Total CapitalThe total capital as determined for element 6.3, expressed in thousands of dollars.

Fill in Table 9 following the instructions and using the definitions below.

LoansLoans are as described in the Non-Mortgage Loan Report

PersonMeans a natural person or an entity.

EntityHas the same meaning as in section 2 of the Bank Act.

Industry SectorsFor the purpose of completing Table 9, commercial loans shall be grouped according to the classifications used for completing the Non-Mortgage Loan Report and using the 12 industry sectors in the list below.

Industry Sector List

Calculate the commercial loans for each of the industry sectors in accordance with the following list and insert each of the totals on the appropriate line in Column A in Table 9. Refer to the Non-Mortgage Loans Report, Reporting Manual, completed in accordance with that Manual.

AgricultureCommercial loans of this type are to be classified in accordance with the Reporting Manual.
Calculate the total by adding together the amounts in the columns “Resident Loan Balances, TC” and “Non-Resident Loan Balances, TC” and subtracting the amount in the column “Allowance for Impairment, TC”, all as set out for Agriculture in the Non-Mortgage Loans Report.

Fishing and TrappingCommercial loans of this type are to be classified in accordance with the Reporting Manual.
Calculate the total by adding together the amounts in the columns “Resident Loan Balances, TC” and “Non-Resident Loan Balances, TC” and subtracting the amount in the column “Allowance for Impairment, TC”, all as set out for Fishing and Trapping in the Non-Mortgage Loans Report.

Logging and ForestryCommercial loans of this type are to be classified in accordance with the Reporting Manual.
Calculate the total by adding together the amounts in the columns “Resident Loan Balances, TC” and “Non-Resident Loan Balances, TC” and subtracting the amount in the column “Allowance for Impairment, TC”, all as set out for Logging and Forestry in the Non-Mortgage Loans Report.

Mining, Quarrying and Oil WellsCommercial loans of this type are to be classified in accordance with the Reporting Manual.
Calculate the total by adding together the amounts in the columns “Resident Loan Balances, TC” and “Non-Resident Loan Balances, TC” and subtracting the amount in the column “Allowance for Impairment, TC”, all as set out for Mining, Quarrying and Oil Wells in the Non-Mortgage Loans Report.

ManufacturingCommercial loans of this type are to be classified in accordance with the Reporting Manual.
Calculate the total by adding together the amounts in the columns “Resident Loan Balances, TC” and “Non-Resident Loan Balances, TC” and subtracting the amount in the column “Allowance for Impairment, TC”, all as set out for Manufacturing in the Non-Mortgage Loans Report.

Construction/Real EstateCommercial loans of this type are to be classified in accordance with the Reporting Manual.
Calculate the total by adding together the amounts in the columns “Resident Loan Balances, TC” and “Non-Resident Loan Balances, TC” and subtracting the amount in the column “Allowance for Impairment, TC”, all as set out for Construction/Real Estate in the Non-Mortgage Loans Report.

Transportation, Communication and Other UtilitiesCommercial loans of this type are to be classified in accordance with the Reporting Manual.
Calculate the total by adding together the amounts in the columns “Resident Loan Balances, TC” and “Non-Resident Loan Balances, TC” and subtracting the amount in the column “Allowance for Impairment, TC”, all as set out for Transportation, Communication and Other Utilities in the Non-Mortgage Loans Report.

Wholesale TradeCommercial loans of this type are to be classified in accordance with the Reporting Manual.
Calculate the total by adding together the amounts in the columns “Resident Loan Balances, TC” and “Non-Resident Loan Balances, TC” and subtracting the amount in the column “Allowance for Impairment, TC”, all as set out for Wholesale Trade in the Non-Mortgage Loans Report.

RetailCommercial loans of this type are to be classified in accordance with the Reporting Manual.
Calculate the total by adding together the amounts in the columns “Resident Loan Balances, TC” and “Non-Resident Loan Balances, TC” and subtracting the amount in the column “Allowance for Impairment, TC”, all as set out for Retail in the Non-Mortgage Loans Report.

ServiceCommercial loans of this type are to be classified in accordance with the Reporting Manual.
Calculate the total by adding together the amounts in the columns “Resident Loan Balances, TC” and “Non-Resident Loan Balances, TC” and subtracting the amount in the column “Allowance for Impairment, TC”, all as set out for Service in the Non-Mortgage Loans Report.

Multiproduct ConglomeratesCommercial loans of this type are to be classified in accordance with the Reporting Manual.
Calculate the total by adding together the amounts in the columns “Resident Loan Balances, TC” and “Non-Resident Loan Balances, TC” and subtracting the amount in the column “Allowance for Impairment, TC”, all as set out for Multiproduct Conglomerates in the Non-Mortgage Loans Report.

Others (Private Not for Profit Institutions, Religious, Health and Educational Institutions)Commercial loans of this type are to be classified in accordance with the Reporting Manual.
Calculate the total by adding together the amounts in the columns “Resident Loan Balances, TC” and “Non-Resident Loan Balances, TC” and subtracting the amount in the column “Allowance for Impairment, TC”, all as set out for Others (Private Not for Profit Institutions, Religious, Health and Educational Institutions) in the Non-Mortgage Loans Report.

Table 9

Instructions

Insert 10% of total capital as determined for element 6.3: 9.3
In column A below, report the amount calculated in accordance with the instructions for each industry sector.
In column B below, for each industry sector that has an amount reported in column A that

(a) exceeds the amount reported at element 9.3, report the amount by which it exceeds the amount reported at element 9.3; and
(b) does not exceed the amount reported at element 9.3, report “zero”.

Industry Sector
Column A

Column B (Column A minus element 9.3; if negative, report “0”)

Agriculture

Fishing & Trapping

Logging & Forestry

Mining, Quarrying & Oil Wells

Manufacturing

Construction / Real Estate

Transportation, Communication & Other Utilities

Wholesale Trade

Retail

Service

Multiproduct Conglomerates

Others (Private Not for Profit Institutions, Religious, Health & Educational Institutions

Total of Column B

Carry total of column B forward to element 9.1

Score
Use the scoring grid below to determine the member institution’s score.

Range of Results
Score

Result of the threshold formula in section 8 is > 90%
5

Aggregate commercial loan Concentration Ratio (9) < 100%
5

Aggregate commercial loan Concentration Ratio (9) ≥ 100% and  the “all in” capital target Tier 1 capital ratio set by the regulator for the member institution
10

2
Leverage ratio is ≥ 100% but < 110% of the leverage ratio authorized by the regulator
7
Tier 1 capital ratio is ≤ the “all in” capital target Tier 1 capital ratio set by the regulator for the member institution but > the minimum Tier 1 capital ratio required by the regulator
6

3
Leverage ratio is < 100% of the leverage ratio authorized by the regulator
0
Tier 1 capital ratio is < the minimum Tier 1 capital ratio required by the regulator
0

Total of Leverage Ratio Score plus Tier 1 Capital Ratio Score

PART 2
Other Quantitative Factors or Criteria

Column 1
Column 2
Column 3

Item
Factors or Criteria
Range of Results
Score

4
Return on Risk-Weighted Assets
≥ 1.15%
5

≥ 0.75% and < 1.15%
3

< 0.75% (including negative results)
0

5
Mean Adjusted Net Income Volatility
≥ 0 and ≤ 0.5
5

> 0.5 and ≤ 1.25
3

> 1.25
0

if the result is negative or the mean net income or loss is zero
0

6
Stress-Tested Net Income

(a) using two standard deviations
≥ 0
5

(b) using one and two standard deviations
≥ 0 and < 0 respectively
3

(c) using one standard deviation
< 0
0

7
Efficiency Ratio
≤ 65%
5

> 65% and ≤ 85%
3

> 85% or a negative number
0

8
Net Impaired Assets to Total Capital
< 20%
5

≥ 20% and < 40%
3

≥ 40%
0

9
Three-Year Moving Average Asset Growth
≤ 15% (including negative results)
5

> 15% and ≤ 40%
3

> 40%
0

10
Aggregate Commercial Loan Concentration Ratio
< 100%
5

≥ 100% and < 300%
3

≥ 300%
0

SOR/2005-48, ss. 19, 20;
SOR/2014-29, s. 7;
SOR/2015-75, s. 25;
SOR/2016-11, s. 8.

Previous Version

SCHEDULE 4(Section 28)

EXAMINER’S RATING

Column 1
Column 2

Item
Examiner’s rating
Score

1
1
35

2
2
31

3
3
21

4
4
11

5
5
0

SOR/2004-57, s. 2;
SOR/2006-47, s. 10.

SCHEDULE 5
[Repealed, SOR/2005-116, s. 3]