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

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Regulations are current to 2023-09-19 and last amended on 2022-03-14. 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 1	Column 2	Column 3	Column 4
Item	Leverage Ratio	Score	Tier 1 Capital Ratio	Score
1	Leverage ratio is ≥ 110% of the leverage ratio authorized by the regulator	10	Tier 1 capital ratio is > the “all in” target Tier 1 capital ratio set by the regulator for the member institution	10
2	Leverage ratio is ≥ 100% but < 110% of the leverage ratio authorized by the regulator	7	Tier 1 capital ratio is ≤ the “all in” target Tier 1 capital ratio set by the regulator for the member institution but ≥ the minimum Tier 1 capital ratio required by the regulator	6
3	Leverage ratio is < 100% of the leverage ratio authorized by the regulator	0	Tier 1 capital ratio is < the minimum Tier 1 capital ratio required by the regulator	0
			Total of Leverage Ratio Score plus Tier 1 Capital Ratio Score

PART 2

Other Quantitative Factors or Criteria

Item	Factors or Criteria	Range of Results	Score
	Column 1	Column 2	Column 3
4	Return on Risk-Weighted Assets	≥ 1.15%	5
		≥ 0.75% and < 1.15%	3
		< 0.75% (including negative results)	0
5	Mean Adjusted Net Income Volatility	≥ 0 and ≤ 0.5	5
		> 0.5 and ≤ 1.25	3
		> 1.25	0
		if the result is negative or the mean net income or loss is zero	0
6	Stress-Tested Net Income
	(a) using two standard deviations	≥ 0	5
	(b) using one and two standard deviations	≥ 0 and < 0 respectively	3
	(c) using one standard deviation	< 0	0
7	Efficiency Ratio	≥ 0% and ≤ 65%	5
		> 65% and ≤ 85%	3
		< 0% or > 85%	0
8	Net Impaired Assets to Total Capital	< 20%	5
		≥ 20% and < 40%	3
		≥ 40%	0
9	Three-Year Moving Average Asset Growth	≤ 15% (including negative results)	5
		> 15% and ≤ 40%	3
		> 40%	0
10	Real Estate Asset ConcentrationFootnote for PART 2 Other Quantitative Factors or Criteria¹	Threshold 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 5	5
		Lowest score in Column E of Table 8 of item 8 of the Reporting Form set out in Part 2 of Schedule 2 is 3	3
		Lowest score in Column E of Table 8 of item 8 of the Reporting Form set out in Part 2 of Schedule 2 is 0	0
11	Asset Encumbrance MeasureFootnote for PART 2 Other Quantitative Factors or Criteria²	8-1.1 ≤ 100%	5
		8-1.2 < 50%	3
		8-1.2 ≥ 50%	0
12	Aggregate Commercial Loan Concentration Ratio	Result 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 Real Estate Asset Concentration Score applies to member institutions other than domestic systemically important banks.
Return to footnote ²The Asset Encumbrance Measure Score applies to member institutions that are domestic systemically important banks.