Canadian Deposit Insurance Corporation - CDIC

AAA

DEFINITION of 'Canadian Deposit Insurance Corporation - CDIC '

A crown corporation owned by the Canadian government that insures bank deposits up to C$100,000 per personal account held in member Canadian banks in they event that the financial institution fails. The corporation was formed under the Financial Administration Act and Canada Deposit Insurance Corporation Act in 1967. The CDIC is similar to the Federal Deposit Insurance Corporation in the United States.

INVESTOPEDIA EXPLAINS 'Canadian Deposit Insurance Corporation - CDIC '

Between 1967 and 2008, Canada experience the failure of 43 financial instutions, all of which were CDIC member banks. When using a bank in either in the United States or Canada, FDIC or CDIC membership is important to consider, as it provides depositors with some insurance against losing their savings.

RELATED TERMS
  1. Canadian Competition Act

    A federal law that governs business practices in Canada. The ...
  2. Risk-Based Deposit Insurance

    Deposit insurance with premiums that reflect how prudently banks ...
  3. Ontario Securities Commission - ...

    The securities regulator that supervises and enforces regulations ...
  4. Deposit

    1. A transaction involving a transfer of funds to another party ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Crown Corporation

    Any corporation that is established and regulated by a country's ...
Related Articles
  1. Are Your Bank Deposits Insured?
    Savings

    Are Your Bank Deposits Insured?

  2. Money Market Mutual Funds: A Better ...
    Mutual Funds & ETFs

    Money Market Mutual Funds: A Better ...

  3. Are My Investments Insured Against Loss?
    Home & Auto

    Are My Investments Insured Against Loss?

  4. CDIC Protects Canadians From Bank Failure ...
    Retirement

    CDIC Protects Canadians From Bank Failure ...

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center