Canada's banking regulator seized control of SVB Financial Group's branch in the country and said it will seek a legal order to wind up the operation.
Peter Routledge, the country's financial superintendent, "took this action to preserve the value of the assets held at the branch in light of the decision by the California Department of Financial Protection and Innovation to shut down Silicon Valley Bank," his office said in a statement Sunday evening.
SVB received a license to open a bank office in Toronto in 2019. It doesn't take commercial or retail deposits. It ended last year with C$864 million ($627 million) of assets, including C$435 million in secured loans, according to regulatory filings.
"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," Routledge said in a statement. "I want to be clear: The Silicon Valley Bank branch in Canada does not take deposits from Canadians, and this situation is the result of circumstances particular to Silicon Valley Bank in the United States."
The Canadian government is also assessing the scope of the country's exposure to SVB's collapse. "We are monitoring and are closely in touch with leaders in the startup and venture community," Laurie Bouchard, a spokesperson for Industry Minister François-Philippe Champagne, said by email.
—With assistance from Brian Platt and Layan Odeh
