Our research shows that informing Canadians about CDIC deposit protection helps keep the financial system safe and
secure, and reduces the risk of bank runs.
A bank run occurs when a large number of customers of a bank or another financial institution withdraw their deposits at once. Although bank runs are rare, they can have a significant impact on the economy and tend to reduce confidence in the financial system.
The probability that individuals will run a bank or other financial institution increases by 40 percentage points if they are not aware that there is deposit protection.
Our research shows that depositors who are made aware of government-backed deposit protection (such as that provided
by CDIC) quickly and easily decide not to run a bank or other financial institution. The optimal level of awareness
to reduce the risk of bank runs is between 60% and 65% of Canadians.
That’s why CDIC is working hard to ensure more Canadians know about deposit protection through its public awareness program.