The British government said customer deposits would be protected “without taxpayer support”.
“SVB UK customers can access their deposits and banking services as usual from today,” it said.
Under the terms of the agreement, Silicon Valley Bank UK Limited, HSBC’s UK subsidiary, will finance the acquisition, which is expected to close immediately. The transaction excludes all assets and liabilities of SVB’s parent company.
The UK deal approved an emergency intervention aimed at averting a crisis in the financial system, announcing on Sunday night that depositors would have access to all their money on Monday morning, after the Biden administration moved to protect SVB clients from losses.
Authorities said they are expanding protections for depositors at New York’s Signature Bank, which was shut down by state regulators on Sunday amid widespread financial sector concerns.
The British government, the Bank of England and British financial regulators have spent days looking for a buyer for SVB’s UK subsidiary to protect the country’s technology sector. UK start-ups are particularly dependent on the bank for funding, but face uncharted waters after US regulators closed SVB on Friday, the second biggest bank failure in US history.
Jeremy Hunt, UK Chancellor of the Exchequer said The government promised to “take care” of the sector and bank customers and “worked urgently” to deliver.
The Bank of England said it approved the sale to “stabilise SVBUK”, ensure “continuity of banking services”, reduce “disruption to the UK technology sector” and “strengthen confidence in the financial system”.
Jeff Stein, David J. Lynch, Tony Romm, Tyler Pager and Julian Mark contributed to this report.
