Enhancing Deposit Insurance Communication Strategies for Financial Stability
Discover how the Canada Deposit Insurance Corporation (CDIC) effectively communicates with depositors to raise public awareness, ensure timely reimbursement, and maintain financial stability in the event of a bank failure. Learn about the importance of communication plans, intervention strategies, and key communication channels utilized by the CDIC.
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Presentation Transcript
Reimbursement to Depositors Communication with Depositors Scott Hayes Director, Risk Assessment & Intervention Canada Deposit Insurance Corporation
Communications with Depositors CDIC Background Founded in 1967 43 failures historically having $26 Bn. deposits Last failure June, 1996 (17 years with no failures) CDIC Today 82 member institutions $2.0 trillion deposits $650 billion insured deposits Up to $100,000 coverage per category 2
Communications with Depositors Public Awareness of Deposit Insurance Coverage and Limits In Canada awareness of CDIC ranges between 55-60% The percentage of Canadians who know (unaided) the dollar limit of coverage ranges between 24-28% 3
Communications with Depositors IADI Enhanced Guidance on Reimbursement Systems and Processes Essential pre-closure activities includes: Developing the communications strategy for dealing with the failure of the bank. 4
Communications with Depositors Intervention Communications Plan ( ICP ) prepared as soon as a member institution is moved to CDIC s acute watchlist. Purpose To guide CDIC through the communications steps required by the failure of the bank. To identify audiences and deliver messages designed to facilitate financial stability in Canada in the midst of the failure of the bank. 5
Communications with Depositors ICP contents Overview of the bank and the environment Communications objectives and strategy Target audiences and message(s) Bank depositor profile Critical path of communications plan Assignment of tasks in communications plan Q s & A s 6
Communications with Depositors Information sources for ICP In the public domain Provided by the Regulator Requested directly from the Bank Obtained during the preparatory examination 7
Communications with Depositors CDIC Communications Channels CDIC s general website and call centre Intervention website and call centre Social media Twitter and Facebook Media briefings and outreach to key media Letters to depositors Email and/or letters to deposit brokers 8
Communications with Depositors Target Audiences with possible differences in the message: Depositors of failed bank Deposit brokers General public/deposit customers of other member institutions News media and market analysts Safety net partners 9
Communications with Depositors 30 days after the bank failure CDIC will hold a post mortem or debrief . Solicit the good, bad and ugly experiences from CDIC staff, liquidator, media monitoring, and public relations firm Consideration would also be given to testing the public s image of CDIC shortly after a failure. 10
