The Corporation's objects are to provide insurance against the loss of part or all of deposits and to promote and otherwise contribute to the stability of the financial system in Canada. These objects are to be pursued for the benefit of persons having deposits with member institutions and in such a manner as will minimize the exposure of the Corporation to loss.

Membership
Membership with CDIC is limited to banks, federally incorporated trust and loan companies, provincially incorporated trust and loan companies and retail associations within the meaning of regulations made under the Cooperative Credit Associations Act. CDIC automatically insures deposits in federal institutions that are authorized to take retail deposits. Provincial trust or loan companies must apply to CDIC for membership and have their applications approved by CDIC's Board of Directors.

Deposit Insurance Protection
Under the CDIC Act, the maximum basic protection for eligible deposits is $100,000 per depositor (principal and interest) at each member institution. This amount was increased from $60,000 in 2005. CDIC provides separate protection for eligible deposits held jointly, in trust, in registered retirement savings plans (RRSPs), in registered retirement income funds (RRIFs), and that hold realty taxes on mortgaged property, also to a maximum of $100,000, in each category. Eligible deposits include: savings and chequing accounts; term deposits, such as guaranteed investment certificates (GICs), and debentures issued by loan companies; money orders and drafts; certified drafts and cheques; and traveller's cheques issued by members. To be eligible for deposit insurance protection, the deposit must be payable in Canada, in Canadian currency. Term deposits must be repayable no later than five years after the date of deposit.

Other responsibilities include monitoring member institutions and taking necessary action depending on the condition of the member institutions as assessed in accordance with CDIC's powers and objects; managing the acquired assets of member institutions; and reducing the risk of loss to the Corporation by making or guaranteeing loans or deposits with a member institution. In addition, the Corporation can act as liquidator or receiver of a member institution. CDIC also manages and invests funds accumulated from the operations of the Corporation.

To carry out its work, CDIC relies on the work of the Office of the Superintendent of Financial Institutions (OSFI) and provincial regulators. They are responsible for regulating and supervising deposit-taking institutions. If a member institution poses a significant risk of loss to the Corporation, CDIC will work closely with the regulator and usually complete an intensive special examination of the company's operations and the value of its assets to clarify CDIC's risk and to establish an information base upon which the Corporation can act promptly toward intervention or failure resolution.