The federal government in Canada has granted itself extraordinary powers to prevent financial panic, following bank scares in the United States and Switzerland. Rachel Grasham, a senior director with the federal finance department, testified before the Standing Committee on Finance that these powers will only be used in exceptional emergency situations. The government aims to promote financial stability and safeguard public confidence in the system. The proposed amendments to the Canada Deposit Insurance Corporation (CDIC) Act seek to allow the cabinet to guarantee deposits in case of a bank run, to the amount that the Minister of Finance determines. The CDIC currently insures eligible deposits for up to $100,000 at each member institution. The authorities granted to the finance minister are temporary and set to expire on April 30, 2024, and had already been granted during the early days of COVID under special emergency legislation.