HSBC chief govt Noel Quinn stated the acquisition makes “excellent strategic sense” for the financial institution’s UK business and strengthens its industrial banking franchise and enhances the flexibility to serve progressive and fast-growing companies, together with within the know-how and life-science sectors, within 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,” Quinn stated in an announcement.
The transfer comes after US authorities moved to shore up deposits and stem any wider fallout from the sudden collapse of its dad or mum, tech startup lender Silicon Valley Bank.
“This morning, the Government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC Deposits will be protected, with no taxpayer support I said yesterday that we would look after our tech sector, and we have worked urgently to deliver that promise,” tweeted UK chancellor Jeremy Hunt.
This morning, the Government and the Bank of England facilitated a non-public sale of Silicon Valley Bank UK to HSBC… https://t.co/4GDyas2rlN
— Jeremy Hunt (@Jeremy_Hunt) 1678690815000
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As of March 10, Silicon Valley Bank UK Limited had loans of round £5.5 billion and deposits of round £6.7 billion, HSBC stated.
SVB UK’s tangible fairness is predicted to be round £1.4 billion, HSBC stated. It will full the transaction instantly and fund it from the financial institution’s current sources. Further, the property and liabilities of the dad or mum firms of SVB UK are excluded from the transaction.
However, in contrast to the United States, Britain has not introduced broader liquidity measures for the banking system.
Source: economictimes.indiatimes.com