FT Reports That The Bank Of England Is Considering a Crackdown On Foreign Bank Branches

The Bank of England is contemplating the plan as part of a review of the collapse of the U.S. bank Silicon Valley Bank earlier this year, according to the newspaper, which cited familiar sources.

The move could lower the requirements for foreign banks with corporate business in the country to establish subsidiaries, according to the paper. It was noted that local regulators find it simpler to assume control of subsidiaries, such as SVB's in London, in the event of failure.

Monday, Nathaniel Benjamin, the BOE's executive director for authorizations and international banks, stated that the central bank will consider the threshold for a foreign bank branch to convert into a subsidiary.

Silicon Valley Bank's UK branch was sold to HSBC (HSBA.L) in March to prevent disruptions to its clients in the United Kingdom, following the collapse of its US parent company.

The Bank of England did not respond to a request for comment immediately.