Following the collapse of Silicon Valley Bank (SVB), UK financial institution major HSBC has reportedly acquired Silicon Valley Bank UK (SVB UK) for £1.
This move will help protect deposits of thousands of startups in the UK, according to a report from UKTN.
The transaction was facilitated by the Bank of England in consultation with the Treasury. No taxpayer funds were used.
Speaking on the deal, HSBC Group CEO Noel Quinn said,
“This acquisition makes excellent strategic sense for our business in the UK. It strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the UK and internationally.”
The report claims SVB UK has over 3,000 startup customers. It also has loans of around £5.5bn and deposits of around £6.7bn as of 10 March, it said.
Quinn added that customers can continue their normal operations.
Also speaking on the sale, the Chancellor of the Exchequer said the UK government worked urgently to find a solution to the situation and provide support to customers of SVB UK.
He added, ““Today the government and the Bank of England have facilitated a private sale of Silicon Valley Bank UK; this ensures customer deposits are protected and can bank as normal, with no taxpayer support. I am pleased we have reached a resolution in such short order.”
The report claims several other banks were in discussions for a potential sale, including Lloyds, Barclays and OakNorth.
ALSO READ:United States’ SVB Shut Down In Biggest Bank Failure Since Global Financial crisis
Over the weekend, SVB became the largest bank collapse since 2008. US regulators seized the assets of the bank, which is a major supporter of technology companies.
Another casualty of the SVB collapse is Signature Bank which has been closed by US regulators.