The Bank of England has moved to put the UK arm of Silicon Valley Bank into resolution after it applied for £1.8bn of liquidity as its parent company collapsed on Friday.
The Financial Times has learned that the Prudential Regulation Authority, which oversees the UK entity, believes that SVB cannot be a viable standalone operation following the takeover of SVB in the US by regulators on Friday.
The view was taken after SVB applied to the BoE’s discount window, which offers short term funding to banks, for £1.8bn on Friday. The BoE declined to comment.
Earlier, it said it was “aware of the issues impacting the firm and are closely engaging with it and overseas regulators”. A spokesman for SVB’s UK arm did not immediately respond to requests for comment.
Hours earlier, SVB UK tweeted a statement stressing that it was a “standalone independent banking institution”.
“We appreciate that this is a concerning time for our clients so we are working tirelessly to support them and give more context,” Erin Platts, CEO and head of SVB UK said in a statement. The tweet has since been removed.