Silicon Valley Bank (SVB) collapsed last weekend threatening hundreds of UK Technology businesses and potentially jeopardising the livelihoods of thousands of workers. On Monday, Silicon Valley Bank (UK) Ltd was sold to HSBC. Customers of SVB UK were able to access their deposits and banking services as normal from Monday.
The transaction was facilitated by the Bank of England, in consultation with the Treasury, using powers granted by the Banking Act 2009. No taxpayer money was involved and customer deposits have been protected. Making use of post-crisis banking reforms, which introduced powers to safely manage the failure of banks, this sale has protected both the customers of SVB UK and taxpayers.
Richard Fuller MP said:
I was pleased with the alacrity shown by the government to facilitate a deal for HSBC to take over SVB UK in order to safeguard these businesses. All at no cost to the UK taxpayer.
On Monday I thanked the Minister for this intervention and asked what learnings could be applied to encourage the emergence of other Challenger Banks in the UK to deliver the benefits that SVB undoubtedly provided, whilst avoiding the failures.
Richard's question and the Minister's answer can be watched here.
