Silicon Valley Bank's UK branch shut down by Bank of England

The Bank of England (BoE) has halted the operations of Silicon Valley Bank’s U.K. subdivision (SVB UK), stating that it has “limited presence” and lacks “critical functions” to enactment the fiscal strategy successful the United Kingdom (UK).

BoE issued a statement connected Mar. 10, declaring that SVB UK volition “stop making payments oregon accepting deposits,” arsenic BoE intends to use to the tribunal to spot SVB UK into a “Bank Insolvency Procedure.”

This follows quality connected the aforesaid time that the California Department of Financial Protection and Innovation ordered the closure of Silicon Valley Bank successful the United States.

BoE explained that a slope insolvency process would mean that “eligible depositors” are paid retired by the Financial Services Compensation Scheme (FSCS) up to the “protected limit” of £85,000 (approximately $102,288 USD) oregon up to £170,000 (approximately $204,577 USD) for associated accounts, arsenic “quickly” arsenic possible.

It added that the bank liquidators would beryllium liable for managing the remaining SVB UK assets and liabilities during its insolvency proceedings, with immoderate recoveries to beryllium “distributed” to its creditors.

Several U.K. task capitalists (VCs), including Index Ventures and Atomico, issued a associated connection connected Mar. 12 endorsing SVB UK. The connection expressed enactment for SVB UK stating that it is simply a “trusted” and “valued partner” that plays a “pivotal” relation successful supporting startups successful the U.K.

A associated connection for @Jeremy_Hunt & @hmtreasury, from a fig of starring UK task superior funds, successful enactment of @SVB_UK pic.twitter.com/7dGHh3WHnr

Related: Banks down? That is wherefore Bitcoin was created, crypto assemblage says

The Coalition for a Digital Economy, a U.K. non-profit that campaigns for policies to enactment integer startups, stated connected Mar. 11 that determination are a “large number” of startups and investors successful the ecosystem who person “significant exposure” to SVB UK, adding that they volition beryllium “very concerned.”

Meanwhile, a Mar. 11 Castle Hill report revealed that salient blockchain VCs person implicit $6 cardinal worthy of assets held by the now-defunct fiscal entity.

These see $2.85 cardinal from Andreessen Horowitz (a16z), $1.72 cardinal from Paradigm, and $560 cardinal from Pantera Capital.