New Delhi: Once a Silicon Valley bank went bankrupt, leaving billions of dollars in deposits, HSBC bought the UK division of the firm. Following consultations with the Prudential Regulation Authority (PRA), HM Treasury (HMT) and the Financial Conduct Authority (HMT), the Bank of England announced in a statement on Monday that the UK arm of the Silicon Valley bank will be sold to HSBC UK Bank Plc. Will go FCA).
The FCA and PRA have given their approval to HSBC. According to the UK’s central bank, the measures were taken to support financial system confidence, stabilize SVBUK, ensure continuity of banking services and minimize damage to the UK technology sector.
As a result of this transaction, the central bank and government “can be sure that all depositors’ money with SVBUK is safe and secure,” the statement read. All services will continue to be provided as usual, and SVBUK will continue to run the UK division of SVB as normal. According to the Bank of England, customers will not see any change.
Also, it lets customers know that they can still use standard channels and make loan payments as per the schedule. The staff will continue to work for SVBUK.