SILICON Valley Bank Financial Group’s (SVB) UK unit is likely to be declared insolvent after the collapse in the US of the Silicon Valley Bank parent.

Eligible depositors would be paid by the UK’s deposit-insurance fund, the Bank of England said late Friday (Mar 10) in a statement. Deposits are insured up to £85,000 (S$138,000) or £170,000 for joint accounts, the central bank said.

“SVB UK has a limited presence in the UK and no critical functions supporting the financial system,” Bank of England said. “In the interim, the firm will stop making payments or accepting deposits.”

The bank’s regulator in the UK, the Prudential Regulation Authority, believes the unit is no longer viable, the Financial Times reported earlier. The business had applied on Friday for a £1.8 billion cash infusion from the central bank’s discount window, a provider of short-term funding, the FT said.

Silicon Valley Bank became the biggest US lender to fail in more than a decade on Friday after an unsuccessful attempt to raise capital and a cash exodus from the tech startups that had fueled the lender’s rise. BLOOMBERG