Canada’s banking regulator has taken permanent control of the assets held by Silicon Valley Bank (SVB)’s branch in Toronto, with the assets being transferred to a new “bridge bank” created by the U.S. Federal Deposit Insurance Corporation (FDIC).
“I took this action to affect an orderly transition of the Canadian branch of Silicon Valley Bank to the FDIC bridge bank,” said Superintendent of Financial Institutions Peter Routledge in a release on March 15. “I am satisfied that this approach, developed with officials in the United States, is in the best interest of the branch’s creditors.”
