Canadian regulator takes temporary control of Silicon Valley Banks Canadian branch

(Reuters) – A Canadian regulator on Sunday said it sought temporary control of Silicon Valley Banks Canadian branch, as the fallout from the collapsed U.S. startup-focused lender reverberated around the world.

The Office of the Superintendent of Financial Institutions (OSFI) said it plans to gain permanent possession of SVB‘s Canadian unit’s assets, adding that it is asking the attorney general of Canada to petition for a winding-up order.

“The 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 located in Santa Clara, California,” OSFI said in a statement.

U.S. authorities were preparing “material action” on Sunday to shore up deposits in Silicon Valley Bank and try to stem any broader financial fallout from the banks sudden collapse, sources familiar with the matter told Reuters.

According to a Bloomberg report, the failure of SVB Financial Group dealt another blow to Canadian advertising-tech firm AcuityAds Holdings Inc, which revealed that almost all of its cash is held at the now-insolvent bank.

(Reporting by Akriti Sharma in Bengaluru; editing by Diane Craft and Leslie Adler)