Insolvency Proceedings for Banks in the UK
Under insolvency proceedings for banks in Britain, some depositors are eligible for up to 85,000 pounds of compensation for lost deposits or 170,000 pounds for joint accounts. The bank's liquidators would manage other assets and liabilities, and any funds recovered would be passed on to creditors. Bank failures are rare in Britain, with only two lenders going through the BoE's resolution procedures since 2009.
SVB UK Seeks Liquidity from Bank of England
Earlier on Friday, the Financial Times reported that SVB's British arm had sought 1.8 billion pounds of liquidity from the Bank of England via its discount window facility, offering emergency funding to banks with adequate collateral.
SVB UK, a Standalone Entity
Silicon Valley Bank UK earlier said it was a standalone entity with an independent board of directors, ring-fenced from the parent company and other subsidiaries.
US Regulators Take Over SVB Financial Group
US banking regulators took over the parent SVB on Friday to protect depositors after the largest bank failure since the financial crisis prompted the global banking sector to shed billions in market value. The rout in SVB's stock began on Thursday and spilled over into other US and European banks. According to a Reuters calculation, US banks have lost over $100 billion in stock market value, and European banks shed another $50 billion over the past two days.