TORONTO -- The chief executive of TD Bank says it would consider participating in cannabis sector financings after recreational marijuana becomes legal in Canada later this year.

Bharat Masrani said to reporters after their annual meeting of shareholders today that the Toronto-based bank views the federal legalization of pot for adult use as an "important data point."

He says any potential cannabis client would be assessed on its merits, but should not have a presence in the U.S., where marijuana remains illegal on a federal level.

Masrani says the bank is continuing to study the issue.

The large Canadian banks had largely steered clear of the country's cannabis sector until January, when Bank of Montreal co-led a $175 million bought deal financing for licensed producer Canopy Growth.

Canopy, Canada's largest licensed producer, does not have any exposure to the U.S. market.