Toronto-Salem Bank

855 Words2 Pages

Davide Ventulieri
1547570
Fundamentals of Business
Toronto-Dominion Bank Toronto-Dominion Bank, more commonly known as TD or TD Bank, was created in the year 1955. The bank is a result of the merger between the Bank of Toronto and the Dominion Bank—both of which were founded in the 19th century (TD, 2016). TD Bank has since become the largest Canadian bank with regards to total assets and is one of the top banks in the world (Mehmood, 2017). This research paper will take a look at the various services provided by this financial institution as well as a look at the financials of the company. TD is a corporation, which, unlike a sole proprietorship or partnership, has limited liability. A corporation, according to the Canada Business Corporations …show more content…

With service operations, the banks activities yield intangible and tangible service products. In the case of TD, these services range from low-level saving to large-scale investing. The firm does not actually produce goods, which prevents them from being a goods production company (Ebert, Griffin, & Starke, 2016). Of the four traditional financial pillars, TD is considered a commercial financial institution. A commercial bank is a chartered Schedule I bank which means that it is domestic, privately owned, and sets its outlook and making profits, much like any other business. TD offers many services such as pensions, transfers, deposits, withdrawals, and investment services such as brokering and providing financial advice (Ebert, Griffin, & Starke, 2016, pp. 348-351). Financial institutions such as TD are not permitted to mint their own currency. In order to expand their money supply, they use deposits invested by savers to re-invest into loans, which they then charge interest on. A portion of the interest is then returned to the initial saver and a portion is kept as profit (Ebert, Griffin, & Starke, 2016, p. 350). For example, a person, business, or corporation seeking a loan or venture capital for their enterprise can look to TD. They then use the money from customers’ savings accounts to invest in loans and make a profit on the interest. On this interest alone, TD managed to gain a net interest income of over $19.9B (Thomson-Reuters,

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