Department of Finance Canada launched consultations on Canada's federal deposit-insurance framework.
Deposit insurance is a financial-safety-net issue. It protects eligible deposits at member banks and federal credit unions if a member institution fails, and it supports confidence in the banking system before a failure occurs.
The consultation is being led by Finance Canada in collaboration with the Canada Deposit Insurance Corporation and other financial-sector agencies.
Finance Canada said CDIC protection is free and automatic when eligible funds are deposited with a member institution. It also noted that there had not been a deposit-insurance payout in almost 30 years.
The review is meant to test whether the framework still fits a changing financial system. Digital banking, faster deposit movement, new account structures, and public expectations can all affect how a deposit-protection regime works during stress.
The previous framework review began in 2014 and led to legislative changes in 2018. Those changes included extending coverage to foreign-currency deposits and modernizing how registered products and trust deposits are treated.
Interested Canadians and stakeholders were invited to comment on the consultation paper by September 26, 2025.