"No other UK banks are directly materially affected by these actions, or by the resolution of SVBUK’s US parent bank."
HSBC UK has stepped in to acquire the UK arm of Silicon Valley Bank for the sum of one pound, easing fears over the bank's collapse.
Silicon Valley Bank, which is used by tech start-up businesses in both the UK and US, had its US operations shut down by regulations and its assets seized on Friday 10th March - the largest failure of a US bank since 2008's financial crisis, sparking fears for its UK arm.
At the point of failure, SVBUK had a total balance sheet size of approximately £8.8bn, and a deposit base of approximately £6.7bn.
The Bank of England said on 10th March that it intended to place SVB's UK bank into a Bank Insolvency Procedure unless a 'credible purchaser' could be found.
Chancellor Jeremy Hunt had said that the collapse of the UK bank would pose "a serious risk to some of our most promising companies in technology and life sciences" after more than 200 bosses of UK tech firms addressed a letter to Hunt on Saturday calling for government intervention.
In a statement, the Bank of England said: "The Bank and HMT can confirm that all depositors’ money with SVBUK is safe and secure as a result of this transaction. SVBUK’s business will continue to be operated normally by SVBUK. All services will continue to operate as normal and customers should not notice any changes.
"No other UK banks are directly materially affected by these actions, or by the resolution of SVBUK’s US parent bank. The wider UK banking system remains safe, sound, and well capitalised."
Noel Quinn, HSBC Group CEO, added: “This acquisition makes excellent strategic sense for our business in the UK. 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.
“We welcome SVB UK’s customers to HSBC and look forward to helping them grow in the UK and around the world. 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. We warmly welcome SVB UK colleagues to HSBC, we are excited to start working with them.”
