The UK arm of Silicon Valley Bank (SVB UK) is set to be declared insolvent by the Bank of England (BoE) following the collapse of US parent company.
Statement from the Bank of England: March 10th 2023
The Bank of England, absent any meaningful further information, intends to apply to the Court to place Silicon Valley Bank UK Limited (‘SVBUK’) into a Bank Insolvency Procedure.
A Bank Insolvency Procedure would mean that eligible depositors are paid out by the FSCS as quickly as possible up to the protected limit of £85,000 or up to £170,000 for joint accounts.
SVBUK’s other assets and liabilities would be managed in the insolvency by the bank liquidators and recoveries distributed to its creditors.
SVBUK 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