Superintendent of Financial Institutions took further action on the Silicon Valley Bank Canadian Branch

News release

For immediate release

OTTAWA ─ March 15, 2023 ─ Office of the Superintendent of Financial Institutions Canada

The Superintendent of Financial Institutions took additional action to protect creditors of the Silicon Valley Bank’s Canadian branch by taking permanent control of its assets. In addition, the Ontario Superior Court of Justice granted a winding up order in respect of the institution.

The winding up order under section 10.1 of the Winding-up and Restructuring Act begins an orderly, court-supervised process to restructure the branch as a result of the newly created, full-service U.S. Federal Deposit Insurance Corporation (FDIC) “bridge bank” – Silicon Valley Bridge Bank, N.A. – in a way that best serves the interests of its creditors and will allow operations of the Silicon Valley Bank to continue in Canada.

The process is intended to facilitate an orderly transition of the Canadian branch of Silicon Valley Bank to the FDIC Bridge Bank. PriceWaterhouseCoopers Inc. has been appointed by the court to oversee the transition. As the court order has been granted, OSFI no longer has an active role in the resolution of this matter.

On March 12, the Superintendent took temporary control of the assets held by Silicon Valley Bank’s Canadian branch in Toronto after the California Department of Financial Protection and Innovation shut down the bank, which is headquartered in Santa Clara, California, and appointed the FDIC as its receiver.

Quick facts

• Silicon Valley Bank’s Canadian business is focused primarily lending to corporate clients, and as such does not hold any commercial or individual deposits.
• In January 2022, OSFI announced implementation of the globally accepted Basel III banking reforms, which include robust requirements for capital and liquidity adequacy that help protect creditors during adverse events.
• To find out more about what OSFI does when working with institutions please see our video on the Guide to Intervention.

“I took this action to affect an orderly transition of the Canadian branch of Silicon Valley Bank to the FDIC bridge bank. I am satisfied that this approach, developed with officials in the United States, is in the best interest of the branch’s creditors."

- Peter Routledge, Superintendent of Financial Institutions

Associated links

• Superintendent of Financial Institutions takes temporary control of Silicon Valley Bank’s Canadian branch (OSFI news release, March 12, 2023)
• California Financial Regulator Takes Possession of Silicon Valley Bank (press release issued by the California Department of Financial Protection and Innovation on March 10, 2023)
• Winding-up and Restructuring Act
• More information about the bridge bank, Silicon Valley Bridge Bank, N.A.

About OSFI

The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987, to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks. OSFI supervises more than 400 federally regulated financial institutions and 1,200 pension plans to determine whether they are in sound financial condition and meeting their prudential requirements. 

Media contact

OSFI – Media Relations
Media-Medias@osfi-bsif.gc.ca
343-550-9373