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Bank of England to Include Silicon Valley Bank UK in Bankruptcy Proceedings

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It is reported that the Bank of England intends to apply to the court to include the British subsidiary of Silicon Valley Bank (SVB UK) in the bank bankruptcy p

Bank of England to Include Silicon Valley Bank UK in Bankruptcy Proceedings

It is reported that the Bank of England intends to apply to the court to include the British subsidiary of Silicon Valley Bank (SVB UK) in the bank bankruptcy proceedings. The Bank of England said in an email statement that the inclusion of bank bankruptcy proceedings means that the FSCS will pay the insured deposits to eligible depositors as soon as possible, with a maximum limit of £ 85000 (the maximum limit for joint accounts is £ 170000). Other assets and liabilities of SVB UK will be managed by the bank liquidator in case of bankruptcy, and the recovered funds will be distributed to its creditors. SVB UK has limited business in the UK and does not have key functions to support the financial system. During this period, the company will stop paying or taking deposits.

The Bank of England has included SVB UK in bank bankruptcy proceedings

Analysis based on this information:


The Bank of England has reportedly announced that it will seek to include the British subsidiary of Silicon Valley Bank (SVB UK) in bank bankruptcy proceedings. According to reports, the move is aimed at enabling the Financial Services Compensation Scheme (FSCS) to pay insured deposits to eligible depositors as soon as possible, with a maximum limit of £85,000 (or £170,000 for joint accounts), while other assets and liabilities of SVB UK will be managed by the bank liquidator in case of bankruptcy, and the recovered funds will be distributed to its creditors.

This announcement comes amid concerns about the potential financial impact of the COVID-19 pandemic, particularly on smaller and more vulnerable companies that may be disproportionately affected. The inclusion of SVB UK in bank bankruptcy proceedings is likely intended to prevent any potential systemic risks or broader spillover effects, given that the bank reportedly has limited business in the UK and does not have key functions to support the financial system.

In practical terms, this means that during the bankruptcy proceedings, SVB UK will stop paying or taking deposits, and its other assets and liabilities will be managed by a bank liquidator. Eligible depositors, however, will be covered by the FSCS and will receive their insured deposits as soon as possible, up to the maximum limits stated.

Overall, the move by the Bank of England is likely intended to provide a measure of protection and reassurance to eligible depositors, particularly those who may have become increasingly anxious or uncertain about the stability of the banking system in light of wider economic challenges. By including SVB UK in bankruptcy proceedings, the Bank of England is taking steps to help safeguard UK depositors and prevent any destabilizing effects on the wider financial system.

In conclusion, while the announcement may be a source of concern for some SVB UK customers, the move is likely intended as a preventative measure rather than a sign of imminent financial instability. It remains to be seen how the bankruptcy proceedings will unfold, but eligible depositors can take comfort in knowing that their insured deposits are protected.

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