The Bank of England (BoE) plans to force more international banks to set up subsidiaries. It is stated that this move is intended to allow the country’s regulators to take control of the subsidiaries in the event of possible bankruptcy.
The Bank of England (BoE) is reportedly considering plans to force more international banks to set up subsidiaries in the country.
The BoE is considering the plan as part of its review process for the bankruptcy of US bank Silicon Valley Bank (SVB) earlier this year.
BoE’s plan to force more international banks to establish subsidiaries in the UK may not be welcomed in the industry, according to the news.
Nathanael Benjamin, the BOE’s executive director for authorizations and international banks, said earlier this week that the central bank would consider the threshold for a foreign bank branch to become a subsidiary.
After its parent company went bankrupt in the US, SVB’s UK arm was sold to HSBC in March to continue servicing its UK customers.
According to the news that BoE’s questions on the subject were not answered, the UK hosts more than 150 bank branches with assets of approximately 6.3 trillion pounds as of March 2023.