As the COVID scourge continues its march across the lives and livelihoods of Canadian individuals and businesses, the federal government has broken the glass and deployed into the economy a historically unprecedented amount of emergency funding in an effort to provide a financial bridge through the crisis to affected enterprises.

Canada recently adopted a "bail-in" or recapitalization regime which enhances the federal Government’s toolkit for the orderly resolution of distressed member institutions determined to be non-viable. This bulletin outlines the Government’s powers to intervene and stabilize failing financial institutions, with a focus on the new amendments relating to bail-in powers and the treatment of derivatives contracts.

What You Need To Know