The Bank of England is reportedly looking at plans to force more international banks to set up subsidiaries in the UK rather than simply local branches.

Officials are considering the plan as part of a review of the collapse of Silicon Valley Bank in the US, which led to the enforced sale of its UK subsidiary earlier this year, according to the Financial Times.

The move could reduce the thresholds requiring foreign banks with corporate business in Britain to set up subsidiaries, the paper said. 

Subsidiaries, such as SVB had in London, are easier for local regulators to seize control of in case of failure.

However, such a move is likely to be unpopular with banks as setting up full-blown subsidiaries is more expensive than creating local branches.

Following the collapse of its parent company in the United States, Silicon Valley Bank’s UK arm was sold to HSBC in March to avoid disrupting its customers in Britain.

The Bank of England has been contacted for comment.

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