Since 1996, a credit enhancement fee has been applied to any new borrowings to bring CDIC's cost of debt in line with that of a private sector organization. Its board is composed solely of independent directors. It has no regulatory responsibilities and no power to step in over a troubled member institution. CompCorp can borrow from the private sector and from member life insurance companies , but it cannot borrow from the federal treasury. The government has reviewed this issue on a number of occasions and continues to be of the view that the extent of government backing for compensation schemes of the deposit-taking and life insurance industries does not need to be identical.
Deposit insurance is provided to protect the general public against systemic risk.
Although life insurance companies may increasingly offer products that compete directly with deposits, only deposit-taking institutions are subject to developments that could lead to system risk issues. Streamlining Canada Deposit Insurance Corporation Standards CDIC standards will be updated and streamlined The Public Accounts Committee, industry groups and others have called for a clarification in the respective roles of CDIC and OSFI to avoid unwarranted duplication in the regulatory system. As the deposit insurer, CDIC engages in a broad range of activities in order to minimize its exposure to loss. CDIC's Role CDIC's mandate is to provide deposit insurance, promote standards of sound business and financial practice, and to contribute to the stability of the financial system, for the benefit of depositors while minimizing its exposure to loss. Currently, there are eight standards, published in 1993, which relate to management of liquidity, interest rate risk, credit risk, real estate appraisals, foreign exchange risk, securities portfolio, capital and internal controls.