The Bank of England has ordered a suspension on all activities of the UK branch of the embattled financial institution Silicon Valley Bank. According to the premier financial institution, the bank lacks the needed presence and zero to no functions that it carries out to help the financial system in the country.
Bank of England puts SVB UK in the insolvency procedure
The statement made available by the Bank of England said the United Kingdom arm of SVB will stop carrying out transactions. In addition, the premier bank also wants to petition the court to put SVB through the insolvency process. This news is coming off the back of an order given by a California financial regulator to shut down the United States branch of the SVB.
The Bank of England clarified that with firm in the insolvency process, it would help eligible customers get up to $100,000 for single accounts and around $200,000 for joint accounts. The bank also mentioned that an agency would take charge of the company’s assets to manage and ensure that all the remaining funds are shared to creditors. However, several banks in the United Kingdom have released a joint statement showing their support for SVB UK.
UK banks show support for SVB UK
In a joint statement released by several banks in the UK, they stated that they have an unshaken trust in SVB UK and believe it is a valuable partner in the UK banking space. In addition, the statement said that the bank has been working tirelessly over the years to help startups find their foot across the UK. Another United Kingdom organization that provides support for firms in terms of policies has also added its voice to that of the banks.
In its statement, the digital advocacy group mentioned that a lot of firms in the country have received help from SVB over the last few years. The statement also mentioned that those involved would be greatly troubled by the events that have occurred in the last few days. In other news, a news outlet has reported that the total amount held by blockchain companies in the bank has risen to over $6 billion. Some companies affected include Andreessen Horowitz, Pantera Capital, and Paradigm.
