Canada’s banking regulator is taking steps toward carrying out daily check-ins with banks in the country to monitor their liquidity following the collapse of the American-based Silicon Valley Bank (SVB), according to media reports.
The move by the Office of the Superintendent of Financial Institutions (OSFI) to more closely monitor the financial health of domestic banks comes just days after it announced that it would be taking temporary control of SVB’s Canadian branch assets.
OFSI also issued notice on March 12 that it is seeking to make permanent the now-temporary asset seizure and that it is requesting Attorney General David Lametti apply for a Winding-Up Order.
On March 14, the Globe and Mail reported that OFSI is now working toward establishing daily check-ins with domestic banks that will allow it to monitor the banks’ liquidity.
The information was acquired from two sources with knowledge of OFSI’s decision, the Globe wrote, whom it did not name as they were not authorized to speak on regulatory matters.
The Epoch Times reached out to OFSI to confirm the report but did not hear back by publication time.
Peter Routledge, Canada’s Superintendent of Financial Institutions, reiterated on March 12 that SVB’s branch within the country doesn’t accept deposits from Canadians.
He said in a statement that he seized SVB’s Canadian assets to preserve their value following the decision by the California Department of Financial Protection and Innovation to shut down the bank.
“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,” he said in the March 12 release.
He added that OFSI’s seizure of SVB’s assets in Canada was solely a “result of circumstances particular to Silicon Valley Bank in the United States.”
Finance Minister Chrystia Freeland met with Routledge and representatives from the Bank of Canada the day after OFSI seized the SVB assets.
Freeland said on March 11 that the country’s financial institutions are “stable and resilient,” according to a spokesperson from her office, who said there are “significant structural and regulatory safeguards” in place to prevent Canadian banks from collapsing.
The Canadian Press contributed to this report.