Bill C-15 Implements Bank Recapitalization Regime

On April 20, 2016, the Government of Canada introduced Bill C-15, which implements certain provisions of the budget tabled in Parliament on March 22, 2016. One of those provisions relates to the creation of a bank recapitalization (or "bail-in") regime which has been a focus of the Government for a couple of years in accordance with expectations established by the Financial Stability Board.¹

What You Need To Know

The key features of the Bank Recapitalization (Bail-In) Regime implemented through Bill C-15 include:

• the Government will have a statutory power to direct the Canada Deposit Insurance Corporation (CDIC) to convert specified eligible shares and liabilities of "domestic systemically important banks" into common shares in the event such bank becomes non-viable;