buildings and architecture of montreal, quebec

The Autorité des marchés financiers (AMF) has proposed a bail-in regime for Quebec-based Desjardins Group.

The AMF on Thursday published a set of draft regulations and guidance that would define the regime for resolving Desjardins if the giant financial co-operative ever runs into financial trouble that could threaten its viability.

The proposals also set out the total loss absorbing capacity requirements that would apply to Desjardins, which was designated as a domestic systemically important financial institution back in 2013.

The proposed regime is substantially similar to the bail-in regime that was adopted for the major Canadian banks last month, the AMF says in a news release.

It is based on the global standards developed by the Financial Stability Board and the Basel Committee on Banking Supervision for systemically important financial institutions.

The proposals, which are out for a 30-day comment period, follow from the passage of Bill 141, which aims to improve the regulation of the financial sector in Quebec.