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

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Canada Deposit Insurance Corporation Differential Premiums By-law

SOR/99-120

CANADA DEPOSIT INSURANCE CORPORATION ACT

Registration 1999-03-10

Canada Deposit Insurance Corporation Differential Premiums By-law

The Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(g)Footnote ^a and section 21Footnote ^b of the Canada Deposit Insurance Corporation Act, hereby makes the annexed Canada Deposit Insurance Corporation Differential Premiums By-law.

Return to footnote ^aR.S., c. 18 (3rd Supp.), s. 51
Return to footnote ^bS.C. 1996, c. 6, s. 27

March 3, 1999

The Minister of Finance, pursuant to subsection 21(3)Footnote ^a of the Canada Deposit Insurance Corporation Act, hereby approves the annexed Canada Deposit Insurance Corporation Differential Premiums By-law made by the Board of Directors of the Canada Deposit Insurance Corporation.

Ottawa, March 4, 1999

Interpretation

1 (1) The definitions in this subsection apply in this By-law.
Act
Act means the Canada Deposit Insurance Corporation Act. (Loi)
CDIC standards
CDIC standards[Repealed, SOR/2005-116, s. 1]
Data Requirements By-law
Data Requirements By-law means the Canada Deposit Insurance Corporation Data and System Requirements By-law. (Règlement administratif sur les exigences en matière de données)
domestic systemically important bank
domestic systemically important bank[Repealed, SOR/2019-43, s. 1]
examiner
examiner means
- (a) in respect of a federal member institution, the Superintendent; and
- (b) in respect of a provincial member institution
  - (i) the Corporation or a person designated under paragraph 28(a) of the Act, or
  - (ii) the government of a province or the agent of the government of a province with whom the Corporation has entered into an agreement under section 38 of the Act. (inspecteur)
filing year
filing year means the calendar year in which a member institution is required to submit the documents referred to in section 15 for the purpose of determining the institution’s annual premium for the premium year beginning in that calendar year. (année de déclaration)
Guidelines for Banks
Guidelines for Banks means the Guidelines for Banks issued by the Superintendent under the Bank Act. (Lignes directrices à l’intention des banques)
guidelines for member institutions
guidelines for member institutions means the Guidelines for Banks or the Guidelines for Trust and Loan Companies, as applicable. (lignes directrices à l’intention des institutions membres)
Guidelines for Trust and Loan Companies
Guidelines for Trust and Loan Companies means the Guidelines for Trust and Loan Companies issued by the Superintendent under the Trust and Loan Companies Act. (Lignes directrices à l’intention des sociétés de fiducie et de prêt)
new member institution
new member institution[Repealed, SOR/2002-126, s. 1]
regulator
regulator means
- (a) in respect of a federal member institution, the Superintendent; and
- (b) in respect of a provincial member institution, the authority whose mandate in respect of the institution under the provincial law governing the institution is comparable to that of the Superintendent in respect of federal member institutions. (organisme de réglementation)
Reporting Form
Reporting Form means the reporting form set out in Part 2 of Schedule 2. (formulaire de déclaration)
Reporting Manual
Reporting Manual means the Manual of Reporting Forms and Instructions published for deposit-taking institutions by the Superintendent, as amended from time to time. (Recueil des formulaires et des instructions)
subsidiary
subsidiary has the same meaning as in section 2 of the Bank Act. (filiale)
(2) Unless otherwise provided in this By-law, terms and expressions used in this By-law have the same meaning as in the guidelines for member institutions or in the Reporting Manual.
(3) For the purpose of determining the annual premium of a member institution for a premium year, a reference in this By-law to the guidelines for member institutions or the Reporting Manual is a reference to those guidelines or that Reporting Manual as amended up to and including October 31 preceding that premium year.
(4) For the purposes of sections 15 and 16 and Schedule 2, a reference, in respect of an amalgamating member institution, to the fiscal year ending in the year preceding the filing year means a reference to the period covered by its audited financial statements prepared as of the day preceding the date of its amalgamation where
- (a) that institution does not have a fiscal year ending in the year preceding the filing year; and
- (b) that amalgamation occurred after April 30 of the year preceding the filing year and on or before April 30 of the filing year.
(5) A reference in Schedule 2 or Schedule 3 to a multiple or ratio authorized or required in respect of a member institution by its regulator means a multiple or ratio authorized or required by that regulator in the course of the regulator’s duties.
(6) [Repealed, SOR/2006-47, s. 1]

SOR/2001-299, s. 37
SOR/2002-126, s. 1
SOR/2005-48, s. 1
SOR/2005-116, s. 1
SOR/2006-47, s. 1
SOR/2009-12, s. 1
SOR/2010-307, s. 1
SOR/2015-75, ss. 1, 26(F)
SOR/2019-43, s. 1
SOR/2020-21, s. 1

Item	Column 1	Column 2	Column 3
	Premium Category	Total Score	Percentage
	Premium Category	Total Score	Premium Years Beginning in or After 2018
1	1	≥ 80	22.5%
2	2	≥ 65 and < 80	45%
3	3	≥ 50 and < 65	90%
4	4	< 50	100%

2 RETURN ON RISK-WEIGHTED ASSETS (%)
Formula:
Complete the following: (2.1 — — — —) ÷ (( 2.2 — — — — + 2.3 — — — — ) / 2) × 100 = 2 %
Elements Use the instructions below to arrive at the elements of the formula. Refer to the following documents: (a) the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI, Reporting Manual, completed in accordance with that Manual as of the fiscal year ending in the year preceding the filing year; and (b) the Basel III Capital Adequacy Reporting — Credit, Market and Operational Risk (BCAR) form, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.
2.1 Net Income or Loss The net income or loss attributable to equity holders and non-controlling interests (the latter to be reported as a negative number) as set out in the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI.
2.2 Adjusted Risk-Weighted Assets as of the End of the Fiscal Year Ending in the Year Preceding the Filing Year Indicate the adjusted risk-weighted assets as set out in Schedule 10.010 – Ratio Calculations of the BCAR form.
2.3 Adjusted Risk-Weighted Assets as of the End of the Fiscal Year Ending in the Second Year Preceding the Filing Year Indicate the adjusted risk-weighted assets as of the end of the fiscal year ending in the second year preceding the filing year, calculated in the same manner as for element 2.2. If the member institution does not have a fiscal year ending in the second year preceding the filing year, it must indicate “zero”, unless it is an amalgamated institution described below. If the member institution is an amalgamated member institution formed by an amalgamation involving one or more member institutions and does not have a fiscal year ending in the second year preceding the filing year, it must indicate the same amount as for element 2.2.

3 MEAN ADJUSTED NET INCOME VOLATILITY
If a member institution has been operating as a member institution for less than five fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), it must indicate “N/A” (“not applicable”) for elements 3, 3.1, 3.2 and 3.13 and fill in any of elements 3.3 to 3.12 that apply to it. If a member institution has been operating as a member institution for five or more fiscal years but less than 10 fiscal years consisting of at least 12 months each (with the last fiscal year of operation ending in the year preceding the filing year), it must complete the formula using the fiscal years during which it has been operating with the appropriate adjustment to the value of “n”. If a member institution formed by an amalgamation involving only one member institution has been operating as a member institution for less than three fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), in addition to filling in the applicable elements as an amalgamated member institution, it must also fill in the applicable elements for the amalgamating member institution. If a member institution formed by an amalgamation involving two or more member institutions has been operating as a member institution for less than three fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), it must indicate “N/A” (“not applicable”) for elements 3, 3.1, 3.2 and 3.13 and fill in any of elements 3.3 to 3.12 that apply to it.
Formula: (Standard deviation of the net income or loss) ÷ (Mean net income or loss)
Complete the following: (3.1 — — — —) ÷ (3.2 — — — —) = 3
Elements Use the instructions below to arrive at the elements of the formula.
3.1 Standard deviation of the Net Income or Loss Determine the standard deviation of the net income or loss using the formula If a member institution has been operating as a member institution for 12 or more fiscal years consisting of at least 12 months each, “n” will be equal to 10. If a member institution has been operating as a member institution for seven or more but less than 12 fiscal years consisting of at least 12 months each, for each year that it is not operating the portion of the formula in the numerator referencing that year would be removed and “n” will be equal to the number of years that it has been so operating less 2 (e.g, if operating for 11 years, remove “(3.12 – 3.2)²” from the numerator and “n” will be equal to 9). If a member institution has been operating as a member institution for six fiscal years consisting of at least 12 months each, “+ (3.7 – 3.2)² + (3.8 – 3.2)² + (3.9 – 3.2)² + (3.10 – 3.2)² + (3.11 – 3.2)² + (3.12 – 3.2)²” must be removed from the formula and “n” will be equal to 4. If a member institution has been operating as a member institution for five fiscal years consisting of at least 12 months each, “+ (3.6 – 3.2)² + (3.7 – 3.2)² + (3.8 – 3.2)² + (3.9 – 3.2)² + (3.10 – 3.2)² + (3.11 – 3.2)² + (3.12 – 3.2)²” must be removed from the formula and “n” will be equal to 3.
3.2 Mean Net Income or Loss Determine the mean net income or loss (the latter to be reported as a negative number) using the formula ((3.3 + 3.4 + 3.5 + 3.6 + 3.7 + 3.8 + 3.9 + 3.10 + 3.11 + 3.12)) ÷ n If a member institution has been operating as a member institution for 12 or more fiscal years consisting of at least 12 months each, “n” will be equal to 10. If a member institution has been operating as a member institution for seven or more but less than 12 fiscal years consisting of at least 12 months each, the portion of the formula in the numerator referencing the years that it was not operating is to be removed and “n” will be equal to the number of years that it has been so operating less 2 (e.g., if operating for 11 years, “+ 3.12” is removed from the numerator and “n” will be equal to 9). If a member institution has been operating as a member institution for six fiscal years consisting of at least 12 months each, “+ 3.7 + 3.8 + 3.9 + 3.10 + 3.11 + 3.12” must be removed from the formula and “n” will be equal to 4. If a member institution has been operating as a member institution for five fiscal years consisting of at least 12 months each, “+ 3.6 + 3.7 + 3.8 + 3.9 + 3.10 + 3.11 + 3.12” must be removed from the formula and “n” will be equal to 3.
Net income or loss (the latter to be reported as a negative number) after tax for each of the last 10 fiscal years. Indicate the net income or loss as determined for element 2.1 for the fiscal year ending in the year preceding the filing year. 3.3 Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.3. 3.4 Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.4. 3.5 Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.5. 3.6 Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.6. 3.7 Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.7. 3.8 Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.8. 3.9 Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.9. 3.10 Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.10. 3.11 Indicate the net income or loss after tax from the audited financial statements for the fiscal year preceding the fiscal year referred to in element 3.11. 3.12 Indicate the number of fiscal years that the member institution has been operating as a member institution (if less than 12). *A member institution must report net income or loss for the last 10 fiscal years.* If a member institution has been operating as a member institution for less than three fiscal years of at least 12 months each and it is a member institution formed by an amalgamation involving only one member institution, it must report the net income or loss of the amalgamating member institution for the three fiscal years or less preceding the amalgamation, as applicable. If a member institution has been operating as a member institution for less than five fiscal years of at least 12 months each, it must report “N/A” (“not applicable”) for the elements corresponding to the fiscal years for which it was not operating as a member institution.

4 STRESS-TESTED NET INCOME
If a member institution has reported “N/A” (“not applicable”) in element 3.13, it must report “N/A” for elements 4A, 4B and 4.3.
Formulas: (Net income or loss) – (1 × Standard deviation of the net income or loss) = Stress-tested net income using one standard deviation (Net income or loss) – (2 × Standard deviation of the net income or loss) = Stress-tested net income using two standard deviations
Complete the following: Stress-tested net income using one standard deviation: 4.1 – (1 × 4.2) = 4A Stress-tested net income using two standard deviations: 4.1 – (2 × 4.2 ) = 4B
Elements Use the instructions below to arrive at the elements of the formulas.
4.1 Net Income or Loss Net income or loss as determined for element 2.1.
4.2 Standard deviation of the Net Income or Loss The standard deviation of the net income or loss as determined for element 3.1.

5 EFFICIENCY RATIO (%)
Formula: (Total non-interest expenses) ÷ (Net interest income + Non-interest income) × 100
Complete the following: (5.1 — — — —) ÷ (5.2 — — — — + 5.3 — — — — ) × 100 = 5 %
Elements Use the instructions below to arrive at the elements of the formula. Refer to the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI, Reporting Manual, completed in accordance with that Manual for the fiscal year ending in the year preceding the filing year.
5.1 Total Non-Interest Expenses Indicate the total non-interest expenses, as set out in the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI, less any charges for impairment included in that total.
5.2 Net Interest Income Determine the net interest income by adding (a) and (b):
(a) Net interest income as set out in the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI
(b) Taxable equivalent adjustment (if any)
Total (insert as element 5.2 of the formula)
5.3 Non-Interest Income Determine the non-interest income by adding (a) and (b):
(a) Non-interest income as set out in the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI
(b) Taxable equivalent adjustment (if any)
Total (insert as element 5.3 of the formula)

Complete Table 6A as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 10.050 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures and Schedule 70.030 – Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements guideline of the Guidelines.
Impaired Instruments		Notional principal amount a	Credit conversion factor b	Credit equivalent amount (a × b)	Individual allowance for expected credit losses
Direct credit substitutes – excluding credit derivatives			100%
Direct credit substitutes – credit derivatives			100%
Transaction-related contingencies			50%
Short-term self-liquidating trade-related contingencies			20%
Sale & repurchase agreements			100%
Forward asset purchases			100%
Forward forward deposits			100%
Partly paid shares and securities			100%
NIFs & RUFs			50%
Undrawn commitments – excluding securitization exposure	Standardized Approach		0%
			20%
			50%
	Advanced IRB Approach		Footnote for Table 6A — Impaired Off-balance Sheet Assets ^**

			Footnote for Table 6A — Impaired Off-balance Sheet Assets ^**
			Footnote for Table 6A — Impaired Off-balance Sheet Assets ^**
Impaired OTC Derivative Contracts
Credit derivative contracts				Footnote for Table 6A — Impaired Off-balance Sheet Assets ^*
Interest rate contracts				Footnote for Table 6A — Impaired Off-balance Sheet Assets ^*
Foreign exchange contracts				Footnote for Table 6A — Impaired Off-balance Sheet Assets ^*
Equity-linked contracts				Footnote for Table 6A — Impaired Off-balance Sheet Assets ^*
Commodity contracts				Footnote for Table 6A — Impaired Off-balance Sheet Assets ^*
Other contracts				Footnote for Table 6A — Impaired Off-balance Sheet Assets ^*
		Total
		Total		Use these totals to calculate element 6.2

Complete Table 6B as of the end of the fiscal year ending in the year preceding the filing year, referring to Schedule 70.030 – Derivative Contracts of the BCAR form and to the Capital Adequacy Requirements guideline of the Guidelines.
Impaired OTC Derivative Contracts (in thousands of dollars)	Credit derivative contracts	Interest rate contracts	Foreign exchange contracts	Equity-linked contracts	Commodity contracts	Other contracts
Potential Future Credit Exposure (PFE)
Total contracts not subject to permissible netting
Total contracts subject to permissible netting
Exposure at Default (EAD) (after taking into account collateral and guarantees)
Total contracts not subject to permissible netting
Total contracts subject to permissible netting
Total Impaired OTC Derivative Contracts (carry forward to “Credit equivalent amount” column in Table 6A)

7 THREE-YEAR MOVING AVERAGE ASSET GROWTH (%)
If a member institution has been operating as a member institution for less than six fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), it must indicate “N/A” (“not applicable”) for elements 7 and 7.5 but still fill in any of elements 7.1 to 7.4 that apply to it. If a member institution formed by an amalgamation involving only one member institution has been operating as a member institution for less than four fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), in addition to filling in the applicable elements as an amalgamated member institution, it must also fill in the applicable elements for the amalgamating member institution. If a member institution formed by an amalgamation involving two or more member institutions has been operating as a member institution for less than four fiscal years consisting of at least 12 months each (with the last fiscal year ending in the year preceding the filing year), it must indicate “N/A” (“not applicable”) for elements 7 and 7.5 but still fill in any of elements 7.1 to 7.4 that apply to it. If a member institution acquires assets in the fiscal year ending in the year preceding the filing year as a result of a merger with or the acquisition of a regulated deposit-taking institution or as a result of the acquisition of the deposit-taking business of a regulated institution, and the value of those acquired assets on the date of their acquisition exceeds 15% of the value of the consolidated assets of the member institution immediately before that merger or acquisition, the member institution must include the value of those acquired assets in elements 7.1 to 7.3.
Formula:
Complete the following:
Elements Use the instructions below to arrive at the elements of the formula.
Assets for Years 1 to 4: Assets for Year 1 Assets for Year 1 is the amount that the member institution entered as element 7.4 of the formula in the Reporting Form submitted by the member institution in the third filing year before the filing year in which this Reporting Form is being submitted.
Year 1:			7.1
Assets for Year 2 Assets for Year 2 is the amount that the member institution entered as element 7.4 of the formula in the Reporting Form submitted by the member institution in the second filing year before the filing year in which this Reporting Form is being submitted.
Year 2:			7.2
Assets for Year 3 Assets for Year 3 is the amount that the member institution entered as element 7.4 of the formula in the Reporting Form submitted by the member institution in the filing year before the filing year in which this Reporting Form is being submitted.
Year 3:			7.3
Assets for Year 4 Refer to the Leverage Requirements Return (LRR), Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year, and to the Basel III Capital Adequacy Reporting – Credit, Market and Operational Risk (BCAR) form, Reporting Manual, completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year. Assets for Year 4 is the amount that the member institution determines by adding the following: (a) the total of the amounts set out in the column “Total” for Securitized Assets – Unrecognized – Institution’s own assets (bank originated or purchased) – Traditional securitizations of Section I – Memo Items of the Consolidated Monthly Balance Sheet, (b) if applicable, the value of assets, acquired by the member institution in the fiscal year ending in the year preceding the filing year as a result of a merger or acquisition referred to in the fourth paragraph after the heading “7 THREE-YEAR MOVING AVERAGE ASSET GROWTH (%)”, for years 1, 2 and 3, if the value of those assets on the date of their acquisition exceeds 15% of the value of the consolidated assets of the member institution immediately before that merger or acquisition, and (c) the amount determined by using the formula 7.4.1 + 7.4.2 + 7.4.3 + 7.4.4 + 7.4.5 + 7.4.6 + 7.4.7 + 7.4.8 – 7.4.9 – 7.4.10 + (7.4.11 – 7.4.12) – 7.4.13 – 7.4.14 + 7.4.15 + 7.4.16 + 7.4.17 + 7.4.18 + 7.4.19 + 7.4.20 + 7.4.21 + 7.4.22 – 7.4.23 – 7.4.24 – 7.4.25 – 7.4.26.
7.4.1 On-balance sheet assets Indicate the amount set out in the column “Accounting balance sheet value” for On-balance sheet assets - for purposes of the Leverage Ratio, as set out in Section 1 – Leverage Ratio Calculation of the LRR. 7.4.2 Off-balance sheet Eligible servicer cash advances or facilities Indicate the amount set out in the column “Notional Amount” for Eligible servicer cash advances or facilities – 10% CCF, as set out in Section 1 – Leverage Ratio Calculation of the LRR. 7.4.3 Other Off-balance sheet Securitization exposures Indicate the amount set out in the column “Notional Amount” for Other off-balance sheet securitization exposures – 100% CCF, as set out in Section 1 – Leverage Ratio Calculation of the LRR. 7.4.4 Off-balance sheet Direct credit substitutes Indicate the amount set out in the column “Notional Amount” for Direct credit substitutes – 100% CCF, as set out in Section 1 – Leverage Ratio Calculation of the LRR. 7.4.5 Off-balance sheet Transaction-related contingent items Indicate the amount set out in the column “Notional Amount” for Transaction-related contingent items – 50% CCF, as set out in Section 1 – Leverage Ratio Calculation of the LRR. 7.4.6 Off-balance sheet Short-term self-liquidating trade letters of credit Indicate the amount set out in the column “Notional Amount” for Short-term self-liquidating trade letters of credit – 20% CCF, as set out in Section 1 – Leverage Ratio Calculation of the LRR. 7.4.7 Total derivative contract exposure (not covered) Indicate the amount set out in the column “Total Contracts” for “(A) Single derivative exposure not covered by an eligible netting contract, (i) Replacement cost”, as set out in Section 2 – Derivative Exposure Calculation of the LRR. 7.4.8 Total derivative contract exposure (covered) Indicate the amount set out in the column “Total Contracts” for “(B) Derivative exposure covered by an eligible netting contract, (i) Replacement cost”, as set out in Section 2 – Derivative Exposure Calculation of the LRR. 7.4.9 On-balance sheet Derivatives Indicate the amount set out in the column “Accounting balance sheet value” for Derivatives, as set out in Section 1 – Leverage Ratio Calculation of the LRR. 7.4.10 Net Common Equity Tier 1 Capital (CET1 after all deductions) Indicate the Net Common Equity Tier 1 Capital (CET1 after all deductions), as set out in Schedule 20.010 – Capital and TLAC Elements of the BCAR form. 7.4.11 Gross Common Equity Tier 1 Capital Indicate the Gross Common Equity Tier 1 Capital, as set out in Schedule 20.010 – Capital and TLAC Elements of the BCAR form. 7.4.12 Total Deduction from Additional Tier 1 Capital Indicate the Total Deduction from Additional Tier 1 Capital, as set out in Schedule 20.010 – Capital and TLAC Elements of the BCAR form. 7.4.13 Total Deduction from Tier 2 Capital Indicate the Total Deduction from Tier 2 Capital, as set out in Schedule 20.010 – Capital and TLAC Elements of the BCAR form. 7.4.14 Eligible Stage 1 and Stage 2 allowance Indicate the Eligible Stage 1 and Stage 2 allowance (re standardized approach), as set out in Schedule 20.010 – Capital and TLAC Elements of the BCAR form. 7.4.15 Excess allowance Indicate the Excess allowance (re IRB approach), as set out in Schedule 20.010 – Capital and TLAC Elements of the BCAR form. 7.4.16 Direct credit substitutes – credit derivatives – Standardized Approach Indicate the amount set out in the column “Notional Principal Amount (a)” for Direct credit substitutes – credit derivatives, as set out in Schedule 10.050 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures of the BCAR form. 7.4.17 Direct credit substitutes – credit derivatives – Foundation IRB approach Indicate the amount set out in the column “Notional Principal Amount (d)” for Direct credit substitutes – credit derivatives, as set out in Schedule 10.050 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures of the BCAR form. 7.4.18 Direct credit substitutes – credit derivatives – Advanced IRB approach Indicate the amount set out in the column “Notional Principal Amount (g)” for Direct credit substitutes – credit derivatives, as set out in Schedule 10.050 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures of the BCAR form. 7.4.19 Sale and repurchase agreements – Standardized approach Indicate the amount set out in the column “Notional Principal Amount (a)” for Sale & repurchase agreements, as set out in Schedule 10.050 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures of the BCAR form. 7.4.20 Sale and repurchase agreements – Foundation IRB approach Indicate the amount set out in the column “Notional Principal Amount (d)” for Sale & repurchase agreements, as set out in Schedule 10.050 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures of the BCAR form. 7.4.21 Sale and repurchase agreements – Advanced IRB approach Indicate the amount set out in the column “Notional Principal Amount (g)” for Sale & repurchase agreements, as set out in Schedule 10.050 – Off-balance Sheet Exposures Excluding Derivatives and Securitization Exposures of the BCAR form. 7.4.22 Stage 1 and Stage 2 allowance on balance sheet assets Indicate the sum of the amounts set out for “Stage 1 and Stage 2 allowance on balance sheet assets for capital purposes” and “Allowance on assets capitalized under the securitization framework not recognized for capital purposes”, as set out in Schedule 10.070 – Balance Sheet Coverage by Risk Type and Reconciliation to Consolidated Balance Sheet of the BCAR form. 7.4.23 “On-balance sheet” securitization exposures Indicate the “On-balance sheet” securitization exposures recognized for capital ratio but not for consolidated balance sheet purposes, as set out in Schedule 10.070 – Balance Sheet Coverage by Risk Type and Reconciliation to Consolidated Balance Sheet of the BCAR form. 7.4.24 Adjustments – measurement bases Indicate the Adjustments to reflect differences in balance sheet exposure amounts resulting from measurement bases used for accounting purposes (fair values), as set out in Schedule 10.070 – Balance Sheet Coverage by Risk Type and Reconciliation to Consolidated Balance Sheet of the BCAR form. 7.4.25 Adjustments – recognition bases Indicate the Adjustments to reflect differences in balance sheet exposure amounts resulting from recognition bases used for accounting purposes (settlement / trade date), as set out in Schedule 10.070 – Balance Sheet Coverage by Risk Type and Reconciliation to Consolidated Balance Sheet of the BCAR form.
Year 4:			7.4
Indicate the number of fiscal years consisting of at least 12 months that the member institution has been operating as a member institution (if less than six fiscal years).
*A member institution must report assets for the last four fiscal years.*
If a member institution has been operating as a member institution for less than four fiscal years consisting of at least 12 months each, it must indicate “N/A” (“not applicable”) for the elements corresponding to the fiscal years for which it was not operating as a member institution.

A	B	C	D	E
Type	Amount	Percentage of Total Mortgage Loans (Amount from Column B ÷ Total Mortgage LoansFootnote for ^*) x 100	Range of Results	ScoreFootnote for ^**
Residential Properties Mortgage Loans			< 50% = 0 ≥ 50% and < 75% = 3 ≥ 75% = 5
Land Development Mortgage Loans			> 10% = 0 > 5% and ≤ 10% = 3 ≤ 5% = 5
Hotel and Motel Properties Mortgage Loans			> 10% = 0 > 5% and ≤ 10% = 3 ≤ 5% = 5
Industrial Properties Mortgage Loans			> 15% = 0 > 10% and ≤ 15% = 3 ≤ 10% = 5
Single Family Dwelling Properties Mortgage Loans			< 35% = 0 ≥ 35% and < 50% = 3 ≥ 50% = 5
Second or Subsequent Mortgage Loans			> 10% = 0 > 5% and ≤ 10% = 3 ≤ 5% = 5
Real Estate Under Power of Sale or Foreclosed Properties			> 8% = 0 > 5% and ≤ 8% = 3 ≤ 5% = 5

8-1 ASSET ENCUMBRANCE MEASURE Only a member institution that is a domestic systemically important bank must complete item 8-1. All other member institutions are to insert “N/A” for item 8-1.3.
8-1.1 Unencumbered Asset Concentration
Threshold Formula: (Total Liabilities – (Subordinated Debt + Covered Bonds Liabilities + Securitization Liabilities + Repos + Shorts)) ÷ (Total Assets – (Impairment + Total Pledged Assets)) × 100
Complete the following: (8-1.1.1 — — — – (8-1.1.2 — — — + 8-1.1.3 — — — + 8-1.1.4 — — — + 8-1.1.5 — — — + 8-1.1.6 — — — )) ÷ (8-1.1.7 — — — – (8-1.1.8 — — — + 8-1.1.9 — — — )) × 100 = 8-1.1 %
Elements Use the instructions below to arrive at the elements of the formula. Refer to the Consolidated Monthly Balance Sheet, the Return of Allowances for Expected Credit Losses and Section I of the Pledging and Repos Report, Reporting Manual, all completed in accordance with that Manual as of the end of the fiscal year ending in the year preceding the filing year.
8-1.1.1 Total Liabilities The total liabilities is calculated by deducting from the amount set out in the column “Total” for Total Liabilities and Shareholders’ Equity the amounts included as shareholders’ equity in Section II – Liabilities of the Consolidated Monthly Balance Sheet.
8-1.1.2 Subordinated Debt The total subordinated debt is the amount set out in the column “Total” for Subordinated Debt in Section II – Liabilities of the Consolidated Monthly Balance Sheet.
8-1.1.3 Covered Bonds Liabilities The covered bonds liabilities is the total of the amounts set out in the column “Total” for Selected information on covered bonds liabilities in Section II – Memo Items of the Consolidated Monthly Balance Sheet.
8-1.1.4 Securitization Liabilities The securitization liabilities is the total of the amounts set out in the column “Total” for Securitization notes payable (institution’s own assets) and Securitization notes payable (third party assets) as set out for the Mortgages and Loans Payable in Section II – Memo Items of the Consolidated Monthly Balance Sheet.
8-1.1.5 Repos The obligations related to assets sold under repurchase agreements is the amount set out in the column “Total” for Obligations related to assets sold under repurchase agreements in Section II – Liabilities of the Consolidated Monthly Balance Sheet.
8-1.1.6 Shorts The obligations related to borrowed securities is the amount set out in the column “Total” for Obligations related to borrowed securities in Section II – Liabilities of the Consolidated Monthly Balance Sheet.
8-1.1.7 Total Assets The total assets is the amount set out in the column “Total” for Total assets in Section I – Assets of the Consolidated Monthly Balance Sheet.
8-1.1.8 Impairment Impairment is the amount set out for “Total” in the column “Recorded Investment Total” under “Stage III”, less the aggregate of the amounts set out for “Total” in the columns “Expected Credit Losses” under “Stage I”, “Stage II” and “Stage III”, in the Return of Allowances for Expected Credit Losses.
8-1.1.9 Total Pledged Assets The total pledged assets is the total of the amounts set out in the column “OUTSTANDING END OF PERIOD – CONSOLIDATED ENTITY” for TOTAL and REPURCHASE AGREEMENTS (REPOS) of SECTION I – PLEDGING AND REPURCHASE AGREEMENTS of the Pledging and Repos Report.
If the result of the threshold formula is equal to or less than 100%, score five for element 8-1.3 and do not complete the rest of item 8-1. If the result is greater than 100%, complete the rest of item 8-1.
8-1.2 Pledged Asset Ratio
Formula: (Total Pledged Assets) ÷ (Total Assets) × 100
Complete the following: (8-1.2.1 — — — —) ÷ (8-1.2.2 — — — —) × 100 = 8-1.2%
8-1.2.1 Total Pledged Assets Indicate the total pledged assets as determined for element 8-1.1.9.
8-1.2.2 Total Assets Indicate the total assets as determined for element 8-1.1.7.

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Instructions
Insert 10% of total capital as determined for element 6.3: 9.3 In column A below, report the amount calculated in accordance with the instructions for each industry sector. In column B below, for each industry sector that has an amount reported in column A that (a) exceeds the amount reported at element 9.3, report the amount by which it exceeds the amount reported at element 9.3; and (b) does not exceed the amount reported at element 9.3, report “zero”.
Industry Sector	Column A	Column B (Column A minus element 9.3; if negative, report “0”)
Agriculture
Fishing & Trapping
Logging & Forestry
Mining, Quarrying & Oil Wells
Manufacturing
Construction / Real Estate
Transportation, Communication & Other Utilities
Wholesale Trade
Retail
Service
Multiproduct Conglomerates
Others (Private Not for Profit Institutions, Religious, Health & Educational Institutions
Total of Column B
		Carry total of column B forward to element 9.1

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