OSFI confirms Toronto-Dominion Bank designation as a global systemically important bank
News release - Ottawa -
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Today the Financial Stability Board (FSB) added Toronto-Dominion Bank to the list of global systemically important banks (G-SIBs). The G-SIB designation and subsequent increased regulatory expectations are designed to reduce the likelihood of a failure and the potential impact that a failure would have on the global economy.
TD is already subject to OSFI’s framework for domestic systemically important banks (D-SIBs), and therefore is well positioned to meet the G-SIB requirements starting in November 2020.
Quick facts
- TD’s G-SIB designation is based on the assessment methodology published by the Basel Committee on Banking Supervision (BCBS) using 2018 data.
- TD is ranked in the lowest capital surcharge bucket (Bucket 1) and already meets the requirement of 1% Common Equity Tier One (CET1) capital.
- TD is the second Canadian bank designated a G-SIB. The Royal Bank of Canada (RBC) was designated as a G-SIB in November 2017.
- In March 2013, OSFI named the six largest Canadian banks as D-SIBs, TD being among them. These banks are subject to a capital surcharge, the statutory bail-in regime, including Total Loss Absorbing Capacity (TLAC) requirements, enhanced supervision, recovery and resolution planning, and increased disclosure. These requirements are consistent with the G-SIB framework.