After U.S. regulators shut down Silicon Valley Bank (SVB) on Friday, the Bank of England has closed the company’s U.K.-based arm. The central bank explained that it intends to place the subsidiary into bank insolvency procedures.
Fallout From SVB Failure Prompts BOE to Close U.K. Branch
The ripple effect of the 16th largest bank in the United States failing has started to unwind after Silicon Valley Bank (SVB) was shut down by the U.S. Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation (DFPI). California’s DFPI explained that the chaos at SVB started on Wednesday and by Thursday, customers attempted to withdraw $42 billion in deposits via wire transfers.
SVB’s failure has now moved overseas and has affected the company’s U.K. subsidiary, prompting the Bank of England to step in and shut it down. On Saturday, SVB U.K.’s official Twitter page retweeted a joint statement from a variety of U.K. venture capital funds supporting the U.K. branch.
The Bank of England (BOE) said Silicon Valley’s U.K. branch will stop processing payments and is no longer accepting deposits. “The Bank of England, absent any meaningful further information, intends to apply to the court to…