Bank of England backs HSBC rescue of Silicon Valley Bank's UK arm
London, Mar 13 (PTI) The UK government announced on Monday that it has facilitated London-based banking major HSBC to buy the embattled UK arm of Silicon Valley Bank for 1 pound, securing the deposits of more than 3,000 customers worth around 6.7 billion pounds.
Santa Clara, California-based Silicon Valley Bank which specialised in lending to technology companies was shut down by US regulators on Friday in what was the largest failure of a US bank since 2008.
According to experts, although the UK arm of SVB was small with only around 3,000 business customers, its collapse would have presented a risk for the tech sector which is seen as crucial to Britain's economic growth.
HSBC said it bought SVB UK which has a balance sheet of 8.8 billion pounds for 1 pound.
"This acquisition makes excellent strategic sense for our business in the UK," HSBC said.
"It strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science
sectors, in the UK and internationally," said Noel Quinn, HSBC group chief executive.
The deal makes use of the UK's post-crisis banking reforms, which introduced powers to safely manage the failure of banks, this sale has protected both the customers of SVB UK and taxpayers. The government said it has a dynamic start-up and scale-up ecosystem and therefore it is pleased that a private sector purchaser has been found for a bank that funds those sectors.
Customers of SVB UK will be able to access their deposits and banking services as normal as a result of the transaction, which was facilitated by the Bank of England in consultation with the UK Treasury department using powers granted by the country's Banking Act 2009.
The Treasury stressed that no taxpayer money is involved.
"The UK's tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs. I said yesterday [Sunday] that we would look after our tech sector, and we have worked urgently to deliver on that promise and find a solution that will provide SVB UK's customers with confidence," said UK Chancellor Jeremy Hunt.
"Today the government and the Bank of England have facilitated a private sale of Silicon Valley Bank UK; this ensures customer deposits are protected and can bank as normal, with no taxpayer support. I am pleased we have reached a resolution in such short order. HSBC is Europe's largest bank, and SVB UK customers should feel reassured by the strength, safety and security that brings them," he said.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Bearys education announces ‘campus connect & talent hunt 2026,' offers up to 100% scholarships
Mangaluru: Bearys Education has announced the launch of its “Campus Connect & Talent Hunt 2026,” scheduled to be held on April 11 at the Bearys Knowledge Campus near Mangalore University in Innoli.
The initiative, aimed at promoting academic excellence and student empowerment, will offer scholarships of up to 100 percent on tuition fees for meritorious candidates.
The programme seeks to identify and support students aspiring to pursue Pre-University Course (PUC), degree, engineering and architecture programmes.
The event is open to students from SSLC (Class 10), PUC (Class 12), Diploma and ITI streams, along with their parents. Organisers said the day-long programme will focus on guidance, engagement and opportunities for students planning their academic future.
A Talent Hunt Examination will be conducted on April 11 at 9.30 am, with eligibility extended to students completing SSLC and PUC in 2026. Based on their performance, candidates will be considered for scholarships of up to 100 per cent.
The event will also feature a career guidance and counselling session led by Ameen-E-Mudassar, CEO of CIGMA. In addition, a technical and science expo showcasing student-led innovations, along with a food festival, will be organised as part of the programme.
Organisers stated that the initiative reflects the institution’s focus on quality education, personality development and integrity, while marking over 120 years of educational service.
Interested participants can register before April 8 by scanning the QR code provided in the official announcement (provided below) or by contacting 89704 96949, 81239 04351, or 99000 66888.
