The Bank of England is looking at contentious plans to force more international banks to set up subsidiaries in the UK, people familiar with the situation have told the Financial Times.
The move could reduce the thresholds requiring foreign banks with corporate business in the country to set up subsidiaries, with their own capital and liquidity. The BoE is considering it as part of a review of the dramatic collapse this year of Silicon Valley Bank, the people said.
Subsidiaries — such as the one SVB had in place in London — enable local regulators to seize control of failing banks rather than leaving their fate to the discretion of their parents’ supervisors.
Read the full story on the Financial Times here.