Canada’s Office of the Superintendent of Financial Institutions (OSFI) is reportedly planning to conduct daily checks on domestic banks to monitor their liquidity after the American-based Silicon Valley Bank (SVB) collapsed. This move by OSFI comes only a few days after it announced temporary control of SVB’s Canadian branch assets. On March 12, OSFI sought to make permanent the temporary asset seizure and requested an application for a Winding-Up Order from Attorney General David Lametti. According to the Globe and Mail, OSFI is working towards establishing daily check-ins with domestic banks to closely monitor their financial health. Peter Routledge, Canada’s Superintendent of Financial Institutions, reiterated that SVB’s Canadian branch does not accept deposits from Canadians. The seizure of SVB’s Canadian assets was solely due to circumstances particular to the bank in the US, according to Routledge.
Canada’s bank regulator will perform daily liquidity checks after SVB’s collapse.
