UK Government and the Bank of England sell Silicon Valley Bank UK to HSBC

UK Government and the Bank of England sell Silicon Valley Bank UK to HSBC

The UK Government and the Bank of England have announced the private sale of Silicon Valley Bank UK to HSBC, with no taxpayer support, according to Chancellor Jeremy Hunt.

The transaction was facilitated by the Bank of England in consultation with the Treasury, using powers granted by the Banking Act 2009.

The sale ensures that customers of SVB UK can access their deposits and banking services as normal from today.

Hunt stated that the tech sector is of huge importance to the British economy and that the government has worked urgently to find a solution to provide SVB UK’s customers with confidence.

The Bank of England stated that all deposits are safe and secure following the sale of SVB UK to HSBC, and that the decision was taken to stabilise SVBUK, ensuring the continuity of banking services, minimising disruption to the UK technology sector and supporting confidence in the financial system.

The Bank and HM Treasury can confirm that all depositors’ money with SVBUK is safe and secure as a result of this transaction.

HSBC’s CEO, Noel Quinn, has stated that the acquisition makes excellent strategic sense for the business in the UK. Customers of SVB UK should feel reassured by the strength, safety and security that HSBC brings.

All services will continue to operate as normal, and borrowers should make any loan repayments to SVBUK as normal. SVBUK staff remains employed by SVBUK, and SVBUK continues to be a PRA/FCA authorised bank.

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