Bank of England considers clampdown on foreign bank branches- FT
9:53 pm Tuesday, July 04th, 2023
(Reuters) -The Bank of England is looking at plans to force more international banks to set up subsidiaries in the UK, The Financial Times reported on Tuesday.
The BOE is considering the plan as a part of a review of the collapse earlier this year of U.S. bank Silicon Valley Bank, the newspaper reported, citing people familiar.
The move could reduce the thresholds requiring foreign banks with corporate business in the country to set up subsidiaries, the paper said. It noted that subsidiaries, such as SVB had in London, are easier for local regulators to seize control of in case of failure.
Nathanael Benjamin, the BOE’s executive director for authorizations and international banks on Monday said the central bank will reflect on the threshold for a foreign bank branch to become a subsidiary.
Following the collapse of its parent company in the United States, Silicon Valley Bank’s UK arm was sold to HSBC in March to avoid disrupting its customers in Britain.
The Bank of England did not immediately respond to a request for comment.
(Reporting by Chandni Shah in Bengaluru; Editing by Josie Kao and Andrea Ricci)
