Canadian Real Estate Secured Lending Portfolio Highlights
Bail-in Implementation
TD
Regulation Overview
■ On April 18, 2018, the Government of Canada published final regulations under the CDIC Act and the Bank Act providing
details of the bank recapitalization "bail-in" regime and final Total Loss Absorbing Capacity (TLAC) guideline.
■ The issuance regulations under the Bank Act and the conversion regulations under the CDIC Act came into force on
September 23, 2018.
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All Canadian Domestic Systemically Important Banks (D-SIBS) were required to comply with the TLAC guideline by
November 1, 2021.
■ The legislation builds on CDIC's existing resolution toolkit to allow it to take temporary control of a failing D-SIB and
grants CDIC statutory powers to convert certain of the D-SIB's qualifying debt into common shares of the bank at the
point of non-viability.
■ Pursuant to the TLAC guideline, the Bank is subject to a
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1) minimum risk-based TLAC ratio of 24.00% of RWA (21.50% plus a 2.50% Domestic Stability Buffer69)
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2) minimum TLAC leverage ratio of 6.75%
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