Q: Can you explain what it means for a banking regulator to "certify dividends"? This statement was made in the G & M yesterday in an article outlining the penalties incurred by TD.
5i Research Answer:
We are somewhat unclear on this as it has not been specified by the bank. But like in the financial crisis and in the pandemic, bank dividends were restricted and needed regulatory approval. The US wants to ensure that TD simply cannot pay out excess dividends at the expense of putting its businesses at risk.