(Bloomberg) --

SVB Financial Group’s UK unit is set 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 in a statement. Deposits are insured up to £85,000 ($102,000) or £170,000 for joint accounts, the central bank said late Friday in a statement.

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

The company has lined up Interpath Advisory to handle the insolvency, according to people familiar with the matter who asked not to be named discussing private discussions. No appointment has been made yet, they said.

Officials for SVB UK and Interpath declined to comment.

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 ($2.2 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. 

--With assistance from Irene García Pérez.

©2023 Bloomberg L.P.