Canadian authorities temporarily control Canadian branch of SVB
2 Min Read
Following the collapse of Silicon Valley Bank, the Canadian authorities announce the temporary seizure of its Canadian branch.
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A sign of a branch of the Silicon Valley Bank (AP).
Canada’s Office of the Superintendent of Financial Institutions (OSFI) announced that Canadian authorities have decided to take temporary control of the assets of the Canadian branch of the Silicon Valley Bank (SVB) following its collapse.
The OSFI said, in a statement, on Sunday, that it "moved to protect creditors by taking temporary control of the assets of the Canadian branch of Silicon Valley Bank." Moreover, the statement noted that the OSFI "intends to seek permanent control of its assets and requesting that the Attorney General of Canada apply for a Winding-Up Order."
The Canadian SVB branch, the statement explained, lends to corporate clients but does not hold commercial or individual deposits, adding that "since the onset of the bank’s difficulties," OSFI had "closely monitored Silicon Valley Bank’s Canadian branch," and then assumed "temporary control of the assets of the branch is the latest action taken by OSFI."
It is worth noting that California's Department of Financial Protection and Innovation (CDFPI) and Federal Deposit Insurance Corp (FDIC) announced on Friday the seizing of SVB's assets - worth nearly $175 billion - and relocating them to a newly established institution, the Deposit Insurance Bank of Santa Clara.
The new body will be responsible for making payments to clients with insured deposits on Monday, while the remaining assets will be auctioned to pay other depositors.
Read more: Musk 'open to the idea' of buying SVB, turning it into digital bank
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