TD Global Finance Unlimited, the Irish unit of Toronto-Dominion Bank, is considering applying for a full banking license in Ireland to expand its services across Europe. The company, which currently holds an investment firm license, received authorization from the Central Bank of Ireland four years ago. Any move to secure a full banking license would allow TD Global Finance to continue targeting wholesale clients, rather than entering the retail banking sector. The company’s assets grew by more than 20% in 2022 to reach €21.1 billion ($24.4 billion) by the end of the year. However, TD Global Finance would be subject to direct supervision by the European Central Bank’s Single Supervisory Mechanism if it is deemed a significant bank, which requires having assets of over €30 billion or significant cross-border activities.
TD Global Finance is primarily involved in bond placement and trading, foreign exchange, equity derivatives, and short-term loans backed by securities. The unit, headed by CEO Enda Kilcullen, has approximately 190 employees. The move to explore a banking license in Ireland goes against previous speculation that Toronto-Dominion might relocate its EU hub from Dublin to another European location. This news also comes as Barclays Bank considers moving its EU headquarters from Dublin to Paris.
Barclays Bank Ireland and TD Global Finance currently operate from the same building in Dublin. Only AIB, Bank of Ireland, Barclays, Bank of America Europe, and Citigroup are currently subject to direct supervision by the Single Supervisory Mechanism, which involves joint teams from the ECB and the Central Bank of Ireland.
