Bank of England Shuts Silicon Valley Bank’s U.K. Subsidiary

The Bank of England said it would place Silicon Valley Bank’s U.K. subsidiary into insolvency procedure following the collapse of its parent in the U.S., the Wall Street Journal reported. In a statement late Friday, the BOE said Silicon Valley Bank’s U.K. arm will stop making payments or accepting deposits. “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,” it said. Silicon Valley Bank’s branch in the U.K. became a separate bank subsidiary requiring its own capital and more intensive local regulation in August last after it reached 100 million British pounds, equivalent to $120.3 million, of insured small business deposits, according to the parent company’s 2022 annual report. The Bank of England said the unit has a limited presence in the U.K. and has no critical function in the country’s financial system. Read more. (Subscription required.)