The Bank of England has closed Silicon Valley Bank’s UK branch, following the closure of its parent company in the United States by regulators. The US bank suffered from a massive “run on the bank” with record amounts of withdrawals causing an insolvency
The UK branch of the SVB, which had been offering financial services to
crypto and technology businesses, has had to shut down completely due to the current circumstances. All operations have been halted, leaving those affected by the closure in need of alternative solutions.
The announcement of the closure of the popular tech bank has caused an upheaval in the tech industry, leaving many start-ups desperately searching for different banking options.
The Bank of England has given customers assurance that their money is secure and will be able to be accessed through the Financial Services Compensation Scheme in the event of any unforeseen circumstances.
In conclusion, the closure of Silicon Valley Bank’s UK branch by the Bank of England, following the shutdown of its parent company by US regulators, has caused a stir in the tech industry. It serves as a reminder of the potential dangers of banking with smaller and less established financial institutions.