Silicon Valley Bank (SVB), one of the largest establishments in the USA, recently declared its collapse. This event, which created a new surge in the banking sector, resulted in an interesting acquisition in England. HSBC UK acquired Silicon Valley Bank UK for just £1. The rapid completion of the deal is part of the UK government’s confidence in the financial system and its support for the tech industry.
HSBC financed the takeover of the collapsed bank using its available resources. Under the agreement, the Bank of England will ensure that the bank will not be subject to collapse proceedings. Thus, the depositors of SVB UK will have secured all their funds.
UK Finance Minister Jeremy Hunt confirmed that they have facilitated this sale exclusively to HSBC. The government said they want to protect the funds of SVB UK clients. Accordingly, those who own the bank account will be affected by the bankruptcy with “minimum loss”.
Bank of England reported that SVB UK operations will continue as usual. He also assured that customers will not experience any disruption in their banking experience.
Noel Quinn, CEO of HSBC Group, stated that the agreement is in line with the vision for the UK banking sector. SVB UK also stated that they will provide their customers with additional assurance that their deposits are backed by the strength of HSBC.
