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Canada Deposit Insurance Corporation Differential Premiums By-law (SOR/99-120)

Regulations are current to 2025-05-27 and last amended on 2025-04-01. Previous Versions

SCHEDULE 3(Subsection 1(5) and sections 21 to 24.1 and 26)Scoring Grid — Quantitative Assessment

PART 1

Capital Adequacy

Range of Results
Column 1Column 2Column 3Column 4
ItemLeverage RatioFootnote for PART 1 Capital Adequacy1ScoreTier 1 Capital RatioScore
1Leverage ratio is ≥ 110% of the leverage ratio authorized by the regulator10Tier 1 capital ratio is > the supervisory target Tier 1 capital ratio set by the regulator for the member institution10
2Leverage ratio is ≥ 100% but < 110% of the leverage ratio authorized by the regulator7Tier 1 capital ratio is ≤ the supervisory target Tier 1 capital ratio set by the regulator for the member institution but ≥ the minimum Tier 1 capital ratio required by the regulator6
3Leverage ratio is < 100% of the leverage ratio authorized by the regulator0Tier 1 capital ratio is < the minimum Tier 1 capital ratio required by the regulator0
Total of Leverage Ratio Score plus Tier 1 Capital Ratio Score

  • Return to footnote 1The Leverage Ratio score does not apply to member institutions that are Category III SMSBs.

PART 2

Other Quantitative Factors or Criteria

Column 1Column 2Column 3
ItemFactors or CriteriaRange of ResultsScore
4Return on Risk-Weighted AssetsFootnote for PART 2 Other Quantitative Factors or Criteria1≥ 1.15%5
≥ 0.75% and < 1.15%3
< 0.75% (including negative results)0
5Mean Adjusted Net Income Volatility≥ 0 and ≤ 0.55
> 0.5 and ≤ 1.253
> 1.250
if the result is negative or the mean net income or loss is zero0
6Stress-Tested Net Income

  • (a) using two standard deviations

≥ 05

  • (b) using one and two standard deviations

≥ 0 and < 0 respectively3

  • (c) using one standard deviation

< 00
7Efficiency Ratio≥ 0% and ≤ 65%5
> 65% and ≤ 85%3
< 0% or > 85%0
8Net Impaired Assets to Total Capital≥ 0% and < 20%5
≥ 20% and < 40%3
≥ 40% or < 0%0
9Three-Year Moving Average Asset Growth≤ 15% (including negative results)5
> 15% and ≤ 40%3
> 40%0
10Real Estate Asset ConcentrationFootnote for PART 2 Other Quantitative Factors or Criteria2Threshold formula result is ≤ 10%5
All scores in Column E of Table 8 of item 8 of the Reporting Form set out in Part 2 of Schedule 2 are 55
Lowest score in Column E of Table 8 of item 8 of the Reporting Form set out in Part 2 of Schedule 2 is 33
Lowest score in Column E of Table 8 of item 8 of the Reporting Form set out in Part 2 of Schedule 2 is 00
11Asset Encumbrance MeasureFootnote for PART 2 Other Quantitative Factors or Criteria38-1.1 ≤ 100%5
8-1.2 < 50%3
8-1.2 ≥ 50%0
12Aggregate Commercial Loan Concentration RatioResult of Threshold formula in item 8 of the Reporting Form set out in Part 2 of Schedule 2 is > 90%5
< 100%5
≥ 100% and < 300%3
≥ 300%0

  • Return to footnote 1The Return on Risk-Weighted Assets score does not apply to member institutions that are Category III SMSBs.

  • Return to footnote 2The Real Estate Asset Concentration score does not apply to member institutions that are domestic systemically important banks.

  • Return to footnote 3The Asset Encumbrance Measure score applies only to member institutions that are domestic systemically important banks.

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