What is the main role of the Canadian Deposit Insurance Corporation (CDIC)?

The Canadian Deposit Insurance Corporation (CDIC) primarily serves to protect depositors in the event of a bank insolvency. This means that if a member financial institution fails, the CDIC ensures that depositors do not lose their savings up to a certain limit. The protection is crucial in maintaining public confidence in the financial system, as it assures individuals that their deposits are safe.

CDIC coverage applies to various types of deposits, including savings accounts, chequing accounts, and term deposits, within the limits set by the corporation. This role is vital for financial stability, as it mitigates the risk of bank runs during times of economic distress when depositors might panic and withdraw their funds en masse.

While options related to managing public pensions, tracking stock market performance, or insuring investment portfolios cover important aspects of financial services, they do not reflect the specific mandate of the CDIC, which is clearly focused on deposit protection.