BoE plans to force international banks to establish subsidiaries in the UK

The Bank of England (BoE) is reportedly considering plans to force more international banks to establish subsidiaries in the country.

According to The Financial Times, the BoE is considering the plan as part of its review process for the bankruptcy of US-based Silicon Valley Bank (SVB) earlier this year.

The BoE’s plan to force more international banks to set up subsidiaries in the UK may not be welcome in the industry, according to the news.

SVB’s UK arm was sold to HSBC

Nathanael Benjamin, BOE’s executive director for international banking and licensing, said earlier this week that the central bank would consider the threshold for a branch of a foreign bank to become a subsidiary.

Following the bankruptcy of its parent company in the US, SVB’s UK division was sold to HSBC in March to continue serving its UK clients.

According to the news that the BoE’s questions on the matter were not answered, the UK is home to more than 150 bank branches with assets of approximately £6.3 trillion as of March 2023. (BRITISH AUTOMOBILE CLUB)