On 13 March 2023, HM Treasury and the Bank of England (BoE) published statements regarding the sale of Silicon Valley Bank (UK) Ltd (SVB UK) to HSBC.
The statements explain that the BoE, in consultation with the Treasury, the PRA and the FCA, has facilitated the sale of SVB UK to HSBC, using powers granted by the Banking Act 2009. No taxpayer money is involved, and customer deposits have been protected. The action was taken to stabilise SVB UK, with the aims of ensuring continuity of banking services, minimising disruption to the UK technology sector and supporting confidence in the financial system, after the failure of its US parent.
Chancellor Jeremy Hunt commented that the sale ‘ensures customer deposits are protected and can bank as normal, with no taxpayer support. I am pleased we have reached a solution 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.’
The sale to HSBC took place under the Special Resolution Regime (SRR), which was created by the Banking Act 2009 after the financial crisis.