Investor Presentaiton
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.
■ 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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