HSBC has bought the UK arm of a collapsed leading tech-focussed bank, after the Government and the Bank of England stepped in to “facilitate” a private sale.
The government said the buyout “ensures customer deposits are protected and can bank as normal, with no taxpayer support”.
Silicon Valley Bank (SVB), which is heavily involved in financing start-up firms, was shut down in the US on Friday and its British arm is being wound up over the weekend.
In a statement, Chancellor Jeremy Hunt said: “The UK’s tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs.
“I said yesterday that we would look after our tech sector, and we have worked urgently to deliver on that promise and find a solution that will provide SVB UK’s customers with confidence.
The Bank of England insisted in a statement that all deposits are “safe and secure” following the sale.
“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,” it said in a statement.