U.K. finance minister and Bank of England work to contain Silicon Valley Bank fallout

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Ministry of finance says that the issues affecting Silicon Valley Bank were specific to it and did not have implications for other banks operating in Britain

Britain’s finance ministry and the Bank of England are working together to minimize the disruption that could stem from a collapse of the U.K. arm of Silicon Valley Bank, which has been seized by U.S. regulators, the ministry said on Saturday.

The ministry said Britain’s banking system remained strong and resilient, adding that the issues affecting Silicon Valley Bank were specific to it and did not have implications for other banks operating in the UK. “Most businesses are operating on very fine margins in the current economy and the contagion from the initial insolvencies will be vast and impact the economy far beyond the tech sector,” the letter said.

Under insolvency proceedings for banks in Britain, some depositors are eligible for up to 85,000 pounds of compensation for cash held at lenders, or 170,000 pounds for joint accounts.

 

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