THE INSTITUTION'S SCORE
Capital acts as a cushion against losses and affords protection for depositors during periods of financial trouble for the bank. Therefore, when it comes to measuring an an institution's financial fortitude, capital is crucial. When it comes to safety and soundness, more capital is better.
On our test to measure capital adequacy, TD Bank, National Association received a score of 8 out of a possible 30 points, falling short of the national average of 13.38.
A bank's Tier 1 capital ratio is a widely used measure of this buffer. TD Bank, National Association's Tier 1 capital ratio was 14.39 percent, exceeding the 6 percent level regulators consider adequate, but under the national average of 25.16 percent. The higher the capital ratio, the better the bank will be able to weather economic difficulties.
Overall, TD Bank, National Association held equity amounting to 13.30 percent of its assets, which exceeded the national average of 12.10 percent.