The Office of the Superintendent of Financial Institutions (OSFI) now exercises “temporary control” of the assets of the Canadian branch of Silicon Valley Bank, after the closure of the headquarters in the United States.
Canada’s financial regulator has also asked the Attorney General of Canada “to seek a winding-up order.”
Silicon Valley Bank is headquartered in the United States and operates in Canada as a foreign bank branch out of Toronto. In Canada, it mainly offers loans to large companies.
“The Superintendent has taken this action to preserve the value of assets held at the branch in light of the California Department of Financial Protection and Innovation’s decision. to close the Silicon Valley Bank located in Santa Clara, California. The US Federal Deposit Insurance Corporation has been appointed receiver,” OSFI said in a statement released on Sunday.
OSFI says it has been closely monitoring the activities of the Canadian branch since Silicon Valley Bank began to experience difficulties.