TD joins list of global systemically important banks

TD Bank has joined Royal Bank of Canada as a Canadian global systemically important bank (G-SIB).

The Financial Stability Board (FSB) published its annual list of G-SIBs on Friday, which featured TD Bank as the only new addition, bringing the overall number of G-SIBs to 30.

The FSB compiles its annual list based on data from the end of 2018 and uses an assessment methodology designed by the Basel Committee on Banking Supervision. The list is published each November.

Banks that are identified as G-SIBs must meet a higher capital buffer, total loss-absorbing capacity (TLAC) requirements, resolution planning requirements and heightened supervisory attention.

TD, ranked in the lowest G-SIB capital surcharge bucket, already meets the requirement of a 1% capital buffer. “Management does not expect any impact to TD’s capital position with this designation,” TD stated in a release.

Along with the addition of TD Bank to the list, the FSB noted that Deutsche Bank has moved down the list, reducing its added capital requirement from 2.0% to 1.5%.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.