LONDON: HSBC said on Monday it was acquiring the UK branch of stricken Silicon Valley Bank for £1, saving a key lender to tech start-ups in Britain.
“This acquisition makes excellent strategic sense for our UK business,” said the HSBC CEO Noël Quinn said in a statement.
The move comes after US authorities moved to shore up deposits and stem any broader fallout from the sudden collapse of its parent company, tech start-up bank Silicon Valley Bank.
Following the announcement, the Bank of England said Britain’s banking system was sound.
“No other UK bank is directly, materially affected by these actions or the resolution of SVBUK’s US parent bank. The wider UK banking system remains safe, sound and well capitalised.”
SVB UK is separate from the US group and HSBC said the assets and liabilities of the parent company have been excluded from the transaction.
The deal ends frantic talks between the government, regulators and prospective buyers for the UK business over the weekend.
From 10 March Silicon Valley Bank UK Limited it had loans of around £5.5 billion and deposits of around £6.7 billion, HSBC said.
SVB UK’s tangible assets are expected to be around £1.4 billion, HSBC said.
The transaction is completed immediately, the bank added.
Unlike the US, Britain has not announced broader liquidity measures for the banking system.
“This acquisition makes excellent strategic sense for our UK business,” said the HSBC CEO Noël Quinn said in a statement.
The move comes after US authorities moved to shore up deposits and stem any broader fallout from the sudden collapse of its parent company, tech start-up bank Silicon Valley Bank.
Following the announcement, the Bank of England said Britain’s banking system was sound.
“No other UK bank is directly, materially affected by these actions or the resolution of SVBUK’s US parent bank. The wider UK banking system remains safe, sound and well capitalised.”
SVB UK is separate from the US group and HSBC said the assets and liabilities of the parent company have been excluded from the transaction.
The deal ends frantic talks between the government, regulators and prospective buyers for the UK business over the weekend.
From 10 March Silicon Valley Bank UK Limited it had loans of around £5.5 billion and deposits of around £6.7 billion, HSBC said.
SVB UK’s tangible assets are expected to be around £1.4 billion, HSBC said.
The transaction is completed immediately, the bank added.
Unlike the US, Britain has not announced broader liquidity measures for the banking system.
