Just two days ago, HSBC bought a subsidiary of Silicon Valley Bank for just one pound. This gesture was labeled as a “symbolic way” to avoid a further collapse in the banking system; European authorities assured that the old continent would not be infected by this collapse.
Following last weekend’s collapse of Silicon Valley Bank, markets around the world were shaken.
However, the rescue of SVB UK’s subsidiary by HSBC was welcomed by UK government authorities and ministers, as well as regulators and emerging technology companies.
In this way, these authorities assured that customers could carry out banking operations as normal, according to a publication made by Reuters.
Britain’s finance minister, Jeremy Hunt, stated in this regard:
“HSBC is Europe’s largest bank and SVB UK customers should be reassured by the strength, safety and security it provides.”
Silicon Valley Bank has loans in Britain of around £5.5 billion. While the sum of deposits amounts to 6.7 billion pounds, so stated HSBC.
In addition, just a few hours ago the new owner of SVB’s UK division said it plans to inject £2 billion of liquidity into that division to try to ensure that business continues to operate normally. Finally, the CEO, Noel Quinn, assured that this acquisition makes “strategic sense” and seeks to improve the bank’s position in the technology and life sciences sectors.