Systemic BanksThe TD Bank has been added to a global list of systemic banks that must hold extra capital, while the Deutsche bank has dropped a rank within the list, the Financial Stability Board announced today. The addition of TD Bank brings the total number of systemic banks to 30.
TD has been placed in the first bucket, with a 1% surcharge. Deutsche's Bank drop means that it now has a 1.5% surcharge which is a signof how the struggling German lender is shrinking and simplfying its operations.
TD Bank is "well positioned to meet the (global systemically important bank) requirements starting in November 2020," Canada's Office of the Superintendent of Financial Institutions, which regulates the industry, said in a separate statement.