The bank of England and the UK government have announced that HSBC will purchase the UK arm of Silicon Valley Bank, after its recent collapse in the USA.
The bank will be purchased for the sum of £1, although all money in the accounts by UK businesses will be guaranteed. So this will have cost HSBC considerably more. The US Government has guaranteed the funds of US companies with the US arm of the bank.
Silicon Valley Bank (UK) Ltd has today been sold to HSBC. HSBC is headquartered in London, is the largest bank in Europe and is one of the world’s largest banking and financial services institutions, serving 39 million customers globally. Customers of SVB UK will be able to access their deposits and banking services as normal from today.
This transaction has been facilitated by the Bank of England, in consultation with the Treasury, using powers granted by the Banking Act 2009. No taxpayer money is involved, and customer deposits have been protected.
Making use of post-crisis banking reforms, which introduced powers to safely manage the failure of banks, this sale has protected both the customers of SVB UK and taxpayers.
This is good news for UK technology businesses and start-up who have been using the bank and will ensure that their funds are safe.
Source Gov UK
Image Credit: Mariia Shalabaieva
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