# HSBC acquires British arm of stricken Silicon Valley Bank
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-13
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: HSBC acquires Silicon Valley Bank UK subsidiary for £1
Meta Description: HSBC rescues key technology start-up lender in UK with strategic acquisition of SVB UK subsidiary for 1 pound. Banking system remains safe and sound.
URL: https://financedigest.com/hsbc-acquires-british-arm-of-stricken-silicon-valley-bankhtml

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By Iain Withers

LONDON (Reuters) -HSBC said on Monday it is acquiring the UK subsidiary of stricken Silicon Valley Bank for 1 pound, rescuing a key lender for technology start-ups in Britain.

“This acquisition makes excellent strategic sense for our business in the UK,” HSBC CEO Noel Quinn said in a statement.

The move comes after U.S. authorities moved to shore up deposits and stem any wider fallout from the sudden collapse of its parent, tech start-up lender [Silicon Valley Bank](https://www.financedigest.com/exclusive-u-s-regulator-seeks-sale-of-silicon-valley-bank-signature-bank-portfolios-sources.html "Exclusive-U.S. regulator seeks sale of Silicon Valley Bank, Signature Bank portfolios-sources").

After the announcement was made, the Bank of [England](https://www.financedigest.com/bank-of-england-fines-former-tsb-executive-over-2018-it-failure.html "Bank of England fines former TSB executive over 2018 IT failure") said Britain’s banking system was sound.

No other UK [banks are directly](https://www.financedigest.com/token-enables-bank-direct-payments-for-caxton-fx-consumer-and-business-customers.html "Token Enables Bank Direct Payments for Caxton FX Consumer and Business Customers"), materially affected by these actions, or by the resolution of SVBUK’s U.S. parent bank. The [wider UK banking](https://www.financedigest.com/hsbc-appoints-new-markets-head-amid-wider-investment-bank-reshuffle.html "HSBC appoints new markets head amid wider investment bank reshuffle") system remains safe, sound, and well capitalised.

SVB UK is ringfenced from the U.S. group, and HSBC said the [assets and liabilities of the parent company were excluded from the transaction](https://www.financedigest.com/rambus-unveils-vaultify-trade-for-secure-transaction-and-storage-of-crypto-assets-on-blockchain.html "Rambus Unveils Vaultify Trade for Secure Transaction and Storage of Crypto Assets on Blockchain").

The deal brings to an [end frantic talks](https://www.financedigest.com/putin-says-peace-talks-with-ukraine-are-at-dead-end-goads-the-west.html "Putin says peace talks with Ukraine are at dead end, goads the West") between the government, regulators, and prospective buyers for the UK business over the weekend.

As of March 10, Silicon Valley [Bank UK Limited had loans of around 5.5 billion](https://www.financedigest.com/20-billion-in-bank-service-fees-are-you-overpaying.html " Billion in Bank Service Fees: Are You Overpaying?") pounds and deposits of around 6.7 billion pounds, HSBC said.

SVB UK’s tangible equity is expected to be around 1.4 [billion pounds](https://www.financedigest.com/shell-to-evaluate-25-billion-pound-british-investments-after-windfall-tax.html "Shell to ‘evaluate’ 25 billion pound British investments after windfall tax"), HSBC said.

The [transaction completes](https://www.financedigest.com/token-completes-first-ever-pisp-open-banking-transaction.html "Token Completes First Ever PISP Open Banking Transaction") immediately, the bank added.

Unlike the United States, Britain has not announced broader [liquidity measures for the banking](https://www.financedigest.com/boes-bailey-says-bank-reforms-worked-but-questions-about-liquidity-buffers.html "BoE’s Bailey says bank reforms worked but questions about liquidity buffers") system.

(Reporting by Iain Withers; editing by John O’Donnell and Jason Neely)


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