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O. Reg. 681/00: DEPOSIT INSURANCE CORPORATION OF ONTARIO
filed December 21, 2000 under Credit Unions and Caisses Populaires Act, 1994, S.O. 1994, c. 11
Skip to contentontario regulation 681/00
made under the
credit unions and caisses populaires act, 1994
Made: December 20, 2000
Filed: December 21, 2000
Amending O. Reg. 78/95
(Deposit Insurance Corporation of Ontario)
1. (1) Subsections 9 (2), (3), (4), (5), (6) and (7) of Ontario Regulation 78/95 are revoked and the following substituted:
(2) The Corporation shall determine the risk rating of each credit union and league in accordance with this section and with the rules set out in DICO Risk Classification System, dated November 10, 2000, as amended from time to time, and published by the Corporation in The Ontario Gazette on November 25, 2000.
(3) The risk rating of a credit union or league at a particular time is determined with reference to the following components:
1. Capital: the level of regulatory capital of the credit union or league.
2. Asset quality: the loan loss experience of the credit union or league.
3. Management: the effectiveness of the risk management practices of the credit union or league, as determined with reference to the Act and By-law No. 5 of the Corporation (“Standards of Sound Business and Financial Practices”).
4. Earnings: the average return on assets of the credit union or league.
5. Asset and liability management: the level of interest rate risk of the credit union or league.
(4) The annual premium payable by a credit union or league is calculated at the rate set out in Column 3 of the Table to this section opposite the category of risk rating set out in Column 2 within which the credit union’s or league’s risk rating falls.
table
|
Column 1 |
Column 2 |
Column 3 |
|
Premium Class |
Risk Rating |
Premium Rate |
|
1 |
85 points or more |
$0.90 per $1,000 of the funds described in subsection (5) for a credit union and in subsection (6) for a league |
|
2 |
At least 70 points and less than 85 points |
$1.00 per $1,000 of those funds |
|
3 |
At least 55 points and less than 70 points |
$1.15 per $1,000 of those funds |
|
4 |
At least 40 points and less than 55 points |
$1.40 per $1,000 of those funds |
|
5 |
Less than 40 points |
$2.10 per $1,000 of those funds |
(5) The calculation of the annual premium for a credit union is based only on Canadian funds on deposit with the credit union, and no premium is payable with respect to that portion of a deposit that is uninsured by virtue of section 270 of the Act.
(6) The calculation of the annual premium for a league is based on Canadian funds on deposit with the league for a person that is not a credit union, and no premium is payable with respect to that portion of a deposit that is uninsured by virtue of section 270 of the Act.
(7) The Corporation may estimate the amount of funds on deposit with the credit union or league using the quarterly financial return of the credit union or league and may adjust the premium upon receiving the audited financial statements.
(2) Section 9 of the Regulation is amended by adding the following subsection:
(8.1) Despite subsections (4) and (8), the minimum annual premium payable by a credit union or league is $250.