This IADI Brief examines the implementation of the bail-in tool within a financial cooperative group, using the Desjardins Group in Québec, Canada, as a case study.

The publication provides an overview of the legal framework, financial solidarity mechanisms, and resolution strategies specific to the cooperative structure of the Desjardins Group. This group was designated as a domestic systemically important financial institution by the Autorité des marchés financiers, Québec. It highlights how Québec has adapted the bail-in regime to address the unique characteristics of financial cooperatives, such as their ownership and capital structure.

This case study provides valuable insights for jurisdictions with financial cooperatives, offering practical lessons on designing and implementing a bail-in regime tailored to cooperative structures while maintaining financial stability and protecting depositors.