Canadian branch of Silicon Valley Bank controlled by Ottawa

The Office of the Superintendent of Financial Institutions (OSFI) is now exercising “temporary control” over the assets of the Silicon Valley bank’s Canadian branch after it closed its headquarters in the United States.

Canada’s financial regulator has asked the Attorney General of Canada to “seek a winding-up order”.

Silicon Valley Bank is headquartered in the United States and operates a foreign bank branch outside Toronto in Canada. In Canada, it primarily provides loans to large companies.

“In light of the California Department of Financial Protection and Innovation’s decision to close Silicon Valley Bank in Santa Clara, California, the Superintendent took this action to preserve the value of the assets at the branch. The US Federal Deposit Insurance Corporation has been appointed receiver,” OSFI said in a statement released Sunday.

OSFI said it had been closely monitoring the activities of the Silicon Valley bank’s Canadian branch since it began to experience difficulties.