Canada's Banking Regulator to Strengthen Control Amid Collapse of SVB, Media Reports

MOSCOW (Sputnik) - The Office of the Superintendent of Financial Institutions (OSFI), Canada's national banking regulator, will intensify its monitoring of the country's banks after the collapse of the United States's Silicon Valley Bank (SVB), Canadian newspaper reported on Tuesday, citing sources familiar with the matter.

The OSFI said that the Canadian government imposed temporary control over the Canadian subsidiary of the bankrupt Silicon Valley Bank, the media reported.

The Canadian regulator obliged the banks within its jurisdiction to submit liquidity reports starting from Tuesday and until further notice, however, such measures do not indicate any serious problems in the banking sector, according to the media outlet.

Chrystia Freeland, Canada's deputy prime minister and minister of finance, has already held meetings with the management of the country's financial institutions and the representatives of the Bank of Canada, as well as with the head of the OSFI, the media reported.

On Friday, California regulators shut down SVB, which became the second largest US bank to collapse after the last financial crisis. All the insured deposits were transferred to Deposit Insurance National Bank of Santa Clara, a separate financial institution created by the US federal regulators to protect the insured deposits. The collapse of SVB was connected with the increase in interest rates by the Federal Reserve System and poor risk management, among other factors.