The Office of the Superintendent of Financial Institutions (OSFI) is now exercising “temporary control” over the assets of Silicon Valley Bank’s Canadian branch following the closure of its US headquarters.
The Canadian Financial Conduct Authority has also asked the Attorney General of Canada to “apply for 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 primarily offers loans to large corporations.
“The Superintendent took 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 Silicon Valley Bank in Santa Clara, California. The US Federal Deposit Insurance Corporation has been appointed as receiver,” OSFI said in a statement released Sunday.
OSFI says it has been closely monitoring the Canadian branch’s activities since Silicon Valley Bank ran into trouble.