TD Steps Into US As Foreign Corporate Lenders Back Off

TD Bank is looking to capitalize on the retreat of some foreign lenders of U.S. corporations, reports said on Friday (Sept. 30).

Toronto-Dominion Bank is looking to strengthen its corporate lending in the U.S, and according to a top executive at the bank, the FI will do so by acquiring the outstanding loans on the books of foreign lenders looking to retreat from the U.S. market.

Reports said TD‘s strategy aims to take advantage of European lenders’ recent distancing from U.S. corporate borrowers due to regulatory challenges.

“Ultimately, we’re looking to buy assets,” said U.S. Head of TD Securities Glenn Gibson in an interview with Reuters. “What we’re looking for in the corporate space is if there are opportunities as foreign banks continue to rejig their strategy.”

According to reports, TD is now one of the U.S.’s 10 largest banks. But it’s just one of several major Canadian financial institutions stepping closer to U.S. operations as growth in their own market slows. Reports also pointed to concerns of a possible housing bubble in Vancouver and Toronto.

“We’re trying to build out the depth of the relationships we have with some of the multinationals that we deal with that have business in Canada, and we’re also trying to expand the number of relationships,” Gibson added, highlighting TD’s focus on looking to attract existing foreign clients towards borrowing from the bank in the U.S.

European bank shares have taken a hit recently, despite an increase in corporate lending, a bit of an anomaly for analysts. But some have concluded that low expectations for EU banks are the cause for suppressed stock value, while a stronger economy could be increasing corporate lending volume.