Canadian lender Toronto Dominion (TD) is on the brink of becoming a global systemically important bank (G-Sib) and incurring additional capital add-ons, Risk Quantum analysis shows.

The bank had a G-Sib score, as calculated by the Basel Committee’s assessment methodology, of 126 at end-2017, up from 116 the previous year. A bank needs a score of 130 to be labelled a G-Sib.

TD, the largest Canadian bank by assets, has increased its G-Sib score four years in a row. The key driver of its