The Silicon Valley Bank has recently been shut down by California regulators. It all began when several worries about the bank’s difficulty obtaining capital surfaced. When the bank was thinking about a potential sale, this inability gradually became a concern. As a result of the sequence of events, the bank has now shuttered.
According to a recent statement on Friday, the Bank of England has shared its intention to close down its UK subsidiary.
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Bank of England to Place SVB’s UK subsidiary into insolvency procedure
The intention was shared by the Bank of England after the collapse of the SVB. According to the details, the Silicon Valley Bank’s U.K. arm will no longer accept deposits or make payments.
The statement reads:
“The Bank of England, absent any meaningful further information, intends to apply to the court to place Silicon Valley Bank UK Ltd. into a bank insolvency procedure.”
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Even though SVB in the UK was functioning independently with over 100 million British pounds in deposits, the Bank of England stated that the branch has a limited UK presence and lacks a critical function in the UK’s financial system. According to the statement, the insolvency procedure will ensure that deposits up to £85,000 and up to £170,000 in joint accounts will be returned to the customers.