The Government of the United Kingdom said that it has worked urgently over the weekend, listening to stakeholders and developing an appropriate solution to provide Silicon Valley Bank UK customers confidence and security. "I am pleased to be able to say we have reached a resolution," said UK Prime Minister in a statement.
"The good news is, customers of SVB UK will be able to access their deposits and banking services as normal from today (13 March). It has been possible because Silicon Valley Bank has been sold to HSBC. HSBC is headquartered in London, is the largest bank in Europe and is one of the world’s largest banking and financial services institutions, serving 39 million customers globally," Sunak said.
The transaction has been facilitated by the Bank of England, in consultation with the HM Treasury and Jeremy Hunt, using powers granted by the Banking Act 2009.
No taxpayer money is involved and customer deposits have been protected.
"I’m often painted as some kind of tech geek. That’s a label I’m actually proud of," the UK prime minister said.
"I will always be on the side of entrepreneurs, innovators and young people inventing the future. Because the biggest lesson I took from my time in California still guides me now. What really matters for economic success – is innovation. If we want our country to succeed, we need to do what we’ve always done and embrace new technologies and the people and culture that create them. No serious analysis of our prospects could conclude anything different," he added.
Sunak further reassured the customers of SVB UK with the strength, safety and security.
In a move that sent global banking shares into turmoil, US regulators on 10 March (local time) shut down Silicon Valley Bank, as markets fretted over possible contagion from the second biggest banking failure since the 2008 financial crisis in the US history.