Bank of England seeks to wind up Silicon Valley Bank's UK arm

The Bank of England said connected Friday that it was seeking a tribunal bid to spot Silicon Valley Bank UK Limited into an insolvency procedure, aft U.S. regulators took implicit its genitor company, SVB Financial Group, earlier successful the day.

"SVB UK has a constricted beingness successful the UK and nary captious functions supporting the fiscal system. In the interim, the steadfast volition halt making payments oregon accepting deposits," the BoE said.

Under insolvency proceedings for banks successful Britain, immoderate depositors are eligible for up to 85,000 pounds ($102,000) of compensation for mislaid deposits, oregon 170,000 pounds for associated accounts.

Other assets and liabilities would beryllium managed by the bank's liquidators and immoderate funds recovered would beryllium passed connected to creditors, the BoE said.

Bank failures are uncommon successful Britain, with lone 2 lenders going done the BoE's solution procedures since 2009.

Earlier connected Friday, the Financial Times reported that SVB's British limb had sought 1.8 cardinal pounds of liquidity from the BoE via its discount model facility, which offers exigency backing to banks if they person capable collateral.

Silicon Valley Bank UK said earlier connected Friday that it was a standalone entity with an autarkic committee of directors, ring-fenced from the genitor institution and different subsidiaries.

U.S banking regulators took implicit the genitor SVB earlier connected Friday successful a bid to support depositors aft the largest slope nonaccomplishment since the fiscal situation prompted the planetary banking assemblage to shed billions successful marketplace value.

The rout successful SVB's stock, which began connected Thursday, has spilled implicit into different U.S. and European banks. U.S. banks person mislaid implicit $100 cardinal successful banal marketplace worth and European banks shed different $50 cardinal successful worth implicit the past 2 days, according to a Reuters calculation.