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March 15 (Reuters) - Canada's financial regulator said
on Wednesday it had taken permanent control of the assets of
Silicon Valley Bank's Canadian branch and was winding up the
institution.
The Office of the Superintendent of Financial Institutions
(OSFI) said in a statement that it was restructuring the branch
in the wake of a decision by the U.S. Federal Deposit Insurance
Corporation to transfer all deposits of Silicon Valley Bank to a
newly created bridge bank.
"I took this action to effect an orderly transition of the
Canadian branch of Silicon Valley Bank to the FDIC bridge bank,"
said Peter Routledge, superintendent of financial institutions.
"I am satisfied that this approach, developed with
officials in the United States, is in the best interest of the
branch’s creditors," he continued.
OSFI said an orderly, court-supervised process would
allow operations of the Silicon Valley Bank unit to continue.
The Canadian business is focused primarily lending to corporate
clients and does not hold any commercial or individual deposits.
OSFI said on Sunday said
it was taking temporary
control of Silicon Valley Bank's Canadian unit.
(Reporting by David Ljunggren and Ismail Shakil; Editing by
Cynthia Osterman)
