Modupe Gbadeyanka
By Modupe Gbadeyanka
The United Kingdom arm of failed Silicon Valley Bank (SVB) has been acquired by Europe’s biggest lender, HSBC, in a deal worth £1.
The transaction was confirmed on Monday by the Bank of England, the regulatory body for the banking industry in the United Kingdom.
With this transaction, the deposits of several customers of the financial institution are safe, as the new owners have agreed to settle the liabilities.
“All depositors’ money with SVB UK is safe and secure as a result of this transaction,” the Bank of England confirmed in a statement today.
In another statement, the chief executive of HSBC, Mr Noel Quinn, declared that the acquisition meant that “SVB UK customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC.”
“This acquisition makes excellent strategic sense for our business in the UK,” he added, noting that, “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.”
SVB UK is a major bank partner for Britain’s tech sector, and the failure of its parent firm in the United States sent tech executives scrambling to work out how to get their cash out to pay staff and cover operating expenses.
SVB, a lender best known for providing financing to startups, had faced liquidity concerns in the United States, triggering a huge bank run last week. That ultimately led to its collapse, the second-biggest of financial institution in US history, on Friday.
