The UK authorities and the Bank of England has facilitated a non-public sale of the UK arm of Silicon Valley Bank to HSBC, in a transfer that can shield deposits with out taxpayer help, finance minister Jeremy Hunt says.
The Bank of England mentioned the broader UK banking system remained secure, sound and properly capitalised.
“This ensures customer deposits are protected and can bank as normal, with no taxpayer support,” Hunt mentioned on Monday.
“I am pleased we have reached a resolution in such short order.
“HSBC is Europe’s largest financial institution, and SVB UK prospects ought to really feel reassured by the power, security and safety that brings them.”
Friday’s dramatic failure of SVB Financial Group, which focuses on tech start-ups, was the biggest bank collapse in the US since the 2008 financial crisis.
It threatened to have a significant impact on British technology companies, given the importance of the lender to some customers, and more than 250 UK tech firm executives had warned that its failure posed an “existential risk” to the sector.
Source: www.perthnow.com.au
