The Financial institution of England mentioned on Friday that it was searching for a courtroom order to put Silicon Valley Financial institution UK Restricted into an insolvency process, after U.S. regulators took over its mother or father firm, SVB Monetary Group, earlier within the day.

“SVB UK has a restricted presence within the UK and no important features supporting the monetary system. Within the interim, the agency will cease making funds or accepting deposits,” the BoE mentioned.

Below insolvency proceedings for banks in Britain, some depositors are eligible for as much as 85,000 kilos ($102,000) of compensation for misplaced deposits, or 170,000 kilos for joint accounts.

Different property and liabilities can be managed by the financial institution’s liquidators and any funds recovered can be handed on to collectors, the BoE mentioned.

Financial institution failures are uncommon in Britain, with solely two lenders going by the BoE’s decision procedures since 2009.

Earlier on Friday, the Monetary Instances reported that SVB’s British arm had sought 1.8 billion kilos of liquidity from the BoE by way of its low cost window facility, which presents emergency funding to banks if they’ve ample collateral.

Silicon Valley Financial institution UK mentioned earlier on Friday that it was a standalone entity with an unbiased board of administrators, ring-fenced from the mother or father firm and different subsidiaries.

U.S banking regulators took over the mother or father SVB earlier on Friday in a bid to guard depositors after the biggest financial institution failure because the monetary disaster prompted the worldwide banking sector to shed billions in market worth.

The rout in SVB’s inventory, which started on Thursday, has spilled over into different U.S. and European banks. U.S. banks have misplaced over $100 billion in inventory market worth and European banks shed one other $50 billion in worth over the previous two days, in response to a Reuters calculation.