Canadian finance minister meets with banking heads, regulator to discuss SVB

OTTAWA (Reuters) -Canada's deputy prime minister and finance minister, Chrystia Freeland, met with the country's banking regulator and heads of financial institutions on Monday, after regulators took temporary control of Silicon Valley Bank's Canadian unit.

Freeland met with Canada's superintendent of financial institutions, Peter Routledge, to discuss the situation, her office said.

She also convened meetings with the heads of national and regional Canadian financial institutions, which were attended by the superintendent and by the Bank of Canada.

"The Deputy Prime Minister continues to receive updates and closely monitor the situation regarding Silicon Valley Bank," Freeland's office said in an email.

Bank stocks around the world plunged on Monday on fears of more bank failures, even as President Joe Biden vowed to take action to ensure the safety of the U.S. banking system following the sudden collapse of Silicon Valley Bank and Signature Bank.

The Office of the Superintendent of Financial Institutions is seeking to gain permanent control of the Canadian branch's assets, after taking temporary control on Sunday.

Innovation Minister Francois-Philippe Champagne said Canadians can feel confident that the domestic banking system is resilient.

"Obviously, it's something to be followed and all the regulatory bodies are doing that right now. But the message is that our banks are very resilient, and Canadians should feel confident," he told the Canadian Broadcasting Corp.

(Reporting by David Ljunggren; Editing by Leslie Adler)