Federal regulator takes temporary control of Maple Bank's Canadian branch
Canadian dollars in Vancouver, on Sept. 22, 2011. (THE CANADIAN PRESS / Jonathan Hayward)
The Canadian Press
Published Wednesday, February 10, 2016 1:42PM EST
Last Updated Wednesday, February 10, 2016 5:58PM EST
OTTAWA -- The federal banking regulator has taken temporary control of the assets of the Canadian branch of the German-based Maple Bank GmbH.
The move follows a decision by a German regulator to suspend the bank following investigations into certain trading activities during the 2006-2010 taxation years.
The Office of the Superintendent of Financial Institutions said Wednesday that Maple Bank's main business at its Toronto branch was securitization, securities financing and structured secured wholesale lending.
The Canadian regulator said the branch has a small number of wholesale deposits.
It is not a member of the Canada Deposit Insurance Corp. and therefore its deposits are not covered by CDIC deposit insurance.
In a statement late Wednesday, the Investment Industry Regulatory Organization of Canada said it has been in "constant communication" with Maple Securities Canada Ltd. and Maple Futures Corp. and has taken "the necessary regulatory actions to preserve the firms' capital in Canada."
"We continue to closely oversee the capital and liquidity of the firms as they reduce their business activities," IIROC said.