(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.