The Bank of England announced its intention to seek court approval to place Silicon Valley Bank UK Limited (SVBUK) into a Bank Insolvency Procedure.

The U.S. Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation (DFPI) have closed Silicon Valley Bank (SVB).

This measure will allow eligible depositors to receive reimbursement up to £85,000 or £170,000 for joint accounts through the Financial Services Compensation Scheme (FSCS) as quickly as possible.

Under the Bank Insolvency Procedure, bank liquidators will manage SVBUK's other assets and liabilities, with recoveries distributed to its creditors. Despite SVBUK's limited presence in the UK, this measure will be put in place to provide support to those affected by the bank's insolvency.

As a result, SVBUK will stop accepting deposits or making payments until further notice. Although the bank does not provide critical functions to support the financial system, the Bank of England is taking necessary steps to protect eligible depositors and ensure that recoveries are appropriately managed during this time.