The Bank of England said on Friday that it was seeking a court order to place Silicon Valley Bank UK Limited into an insolvency procedure, after US regulators took over its parent company, SVB Financial Group SIVB.O, earlier in the day.
“SVB UK has a limited presence in the UK and no critical functions supporting the financial system. In the interim, the firm will stop making payments or accepting deposits,” the BoE said.
Under insolvency proceedings for banks in Britain, some depositors are eligible for up to 85,000 pounds ($102,000) of compensation for lost deposits, or 170,000 pounds for joint accounts.
Source : Silicon Valley Bank’s UK arm faces shutdown as Bank of England takes action