Regulator takes control of Silicon Valley Bank’s Canadian branch
8:03 pm Sunday, March 12th, 2023
By Akriti Sharma and Nia Williams
(Reuters) -A Canadian banking regulator on Sunday said it was taking temporary control of Silicon Valley Bank’s unit in the country, as the fallout from the collapsed U.S. startup-focused lender reverberated around the world.
The Office of the Superintendent of Financial Institutions (OSFI) said it is seeking to gain permanent control of the Canadian branch’s assets, adding that it is asking the attorney general of Canada to petition for a winding-up order of operations.
“By taking temporary control of the Canadian branch of Silicon Valley Bank, we are acting to protect the rights and interests of the branch’s creditors,” Peter Routledge, the superintendent of financial institutions, said in a statement.
OFSI said the U.S.-headquartered bank has operated in Canada since 2019 as a foreign bank branch based in Toronto. Its business in Canada is primarily lending to corporate clients, and the branch does not hold any commercial or individual deposits in Canada.
The Canadian unit had C$435 million ($315.33 million) in secured loans at the end of last year, more than double the amount at the end of 2021, according to regulatory filings.
Canadian digital advertising-tech firm AcuityAds Holdings Inc. became the latest company swept up in the SVB mayhem, when it revealed on Saturday that it held $55 million in deposits at SVB, accounting for almost 90% of its total cash.
Silicon Valley Bank customers in the United States will have access to their deposits starting on Monday, officials said on Sunday, as the federal government announced actions to shore up deposits and stem any broader financial fallout from the sudden collapse of the tech startup-focused lender.
($1 = 1.3795 Canadian dollars)
(Reporting by Akriti Sharma in Bengaluru; editing by Diane Craft, Leslie Adler and Jonathan Oatis)
