{"id":46529,"date":"2023-03-12T15:30:24","date_gmt":"2023-03-12T19:30:24","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=46529"},"modified":"2023-03-12T16:55:42","modified_gmt":"2023-03-12T20:55:42","slug":"bank-of-england-closes-silicon-valley-banks-uk-branch","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/bank-of-england-closes-silicon-valley-banks-uk-branch\/","title":{"rendered":"Bank Of England Closes Silicon Valley Bank’s UK Branch"},"content":{"rendered":"\n

The United Kingdom branch of Silicon Valley Bank<\/a> has had its operations suspended by the Bank of England (BoE).<\/p>\n\n\n\n

\"Bank
Bank Of England Closes Silicon Valley Bank's UK Branch<\/figcaption><\/figure>\n\n\n\n

The Bank of England<\/a> (BoE) has halted the operations of Silicon Valley Bank\u2019s United Kingdom branch (SVB U.K.) stating that it has a \u201climited presence\u201d in the U.K. and no \u201ccritical functions\u201d supporting the financial system.<\/p>\n\n\n\n

SVB U.K. will “stop making payments or accepting deposits,” according to a statement made by BoE on March 10; BoE plans to ask the court to put SVB U.K. into a “Bank Insolvency Procedure.”<\/p>\n\n\n\n

This comes after the California Department of Financial Protection and Innovation shut down SVB. The BoE explained that a bank insolvency procedure would mean that \u201celigible depositors\u201d are paid out by the Financial Services Compensation Scheme up to the \u201cprotected limit\u201d of \u00a385,000 (approximately $102,288) or up to \u00a3170,000 (approximately $204,577) for joint accounts, as \u201cquickly\u201d as possible.<\/p>\n\n\n\n

It further stated that during its insolvency proceedings, the bank liquidators would manage the remaining SVB U.K. assets and liabilities, with any recoveries “distributed” to its creditors.<\/p>\n\n\n\n

On March 12, a number of venture capitalists<\/a> (VCs) in the UK, including Index Ventures and Atomico, released a statement supporting SVB U.K. SVB U.K. was praised in the statement, which claimed that it is a “trusted” and “valued partner” who supports startups in the U.K. in a “pivotal” way.<\/p>\n\n\n\n

\n

A joint statement for @Jeremy_Hunt\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> & @hmtreasury<\/use><\/svg><\/span><\/a>, from a number of leading UK venture capital funds, in support of @SVB_UK<\/use><\/svg><\/span><\/a> pic.twitter.com\/7dGHh3WHnr<\/use><\/svg><\/span><\/a><\/p>— Atomico (@atomico) March 11, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

A U.K. nonprofit organization called the Coalition<\/use><\/svg><\/span><\/a> for a Digital Economy claimed on March 11 that a “large number” of startups and investors in the ecosystem have “significant exposure” to SVB U.K. and that this will cause them to be “very concerned.”<\/p>\n\n\n\n

According to a March 11 Castle Hill article, well-known blockchain VCs hold assets worth over $6 billion at the now-defunct bank. Included in these are $560 million from Pantera Capital, $1.72 billion from Paradigm, and $2.85 billion from Andreessen Horowitz.<\/p>\n","protected":false},"excerpt":{"rendered":"

The United Kingdom branch of Silicon Valley Bank has had its operations suspended by the Bank of England (BoE). The Bank of England (BoE) has halted the operations of Silicon Valley Bank\u2019s United Kingdom branch (SVB U.K.) stating that it has a \u201climited presence\u201d in the U.K. and no \u201ccritical functions\u201d supporting the financial system. […]<\/p>\n","protected":false},"author":43,"featured_media":46531,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[4723,13730,1507],"class_list":["post-46529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bank-of-england","tag-silicon-valley-bank","tag-united-kingdom"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/03\/croc_1678646122438.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/46529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=46529"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/46529\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/46531"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=46529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=46529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=46529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}