HSBC UK Takes Over SVB UK After its Closure by US Officials

LONDON: The UK wing of HSBC Holdings has taken over the UK wing of the Silicon Valley Bank UK at a value of just 1 Sterling Pound. As of March 10, the bank is expected to have around 6.7 billion pounds in deposits and 5.5 billion in loans.

For the year ending on December 31, 2022, the Silicon Valley Bank of UK recorded a profit before paying their taxes with tangible equities worth around 1.4 billion pounds. The parent companies of SVB UK are not included in this transaction. HSBC mentioned that all the acquisition procedures will be funded by the newly made acquisitions.

“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.” mentioned Noel Quinn, the CEO of the HSBC Group.

This acquisition is not expected to make much difference to the global balance sheet of this banking agency, but definitely increase its footfall and penetration in the markets of the UK.

The Silicon Valley Bank is known to be one of the biggest lenders of the country and multiple tech giants that have their services across the world, are clients of this financial institution. The downing of shutters on the organisation has caused panic not only in the tech circles but also sent investors and depositors into a frenzy.

US regulators closed down the Silicon Valley Bank on Friday and took control of all its deposits and assets. This development has been mentioned by many as the biggest dip in terms of the retail banking sector since the global financial crisis of 2008.

Also Read: Shutters Downed on Silicon Valley Bank by US Regulators

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