LONDON (Reuters) – Britain’s finance minister Jeremy Hunt said the government and the Bank of England had facilitated a private sale of the UK arm of Silicon Valley Bank to HSBC, in a move which would protect deposits without taxpayer support.
The Bank of England said the wider UK banking system remained safe, sound, and well capitalised.
“This ensures customer deposits are protected and can bank as normal, with no taxpayer support,” Hunt said in a statement on Monday. “I am pleased we have reached a resolution in such short order.
“HSBC is Europe’s largest bank, and SVB UK customers should feel reassured by the strength, safety and security that brings them.”
Friday’s dramatic failure of SVB Financial Group, which focuses on tech startups, was the biggest bank collapse in the U.S. 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 threat” to the sector.
(Reporting by Sarah Young; Editing by Kate Holton)