HSBC Holdings will reportedly purchase Silicon Valley Bank UK Limited (SVB UK)

HSBC mua lai chi nhanh tai Anh cua Silicon Valley Bank voi gia mot bang Anh 1

On March 13, HSBC formally stated that Silicon Valley Bank UK (SVB UK) will be purchased by its subsidiary, HSBC UK Bank, for one British pound ($1.21).

Last week, Silicon Valley Bank made news when it revealed balance sheet and liquidity problems. Venture capital firms reportedly encouraged investors to remove their money from the bank as a result of the extreme panic this caused. California’s financial watchdogs closed down SVB after it was unable to raise the money it needed to survive.

According to HSBC’s release, SVB UK has deposits of about 6.7 billion pounds ($8.1 billion) and loans of about 5.5 billion pounds ($6.7 billion) as of March 10, 2023. SVB UK reported a profit of $106 million (before taxes) at year’s end, but analysts predict that its tangible equity will be close to $1.7 billion. The agreement with HSBC does not include any assets or liabilities that belong to SVB UK’s parent entities. Noel Quinn – CEO of Britain’s biggest bank – commented:

“This acquisition makes excellent strategic sense for our business in the UK. 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.”

He clarified that SVB UK clients would receive the highest level of protection and may carry on banking as usual following the arrangement. When it released its Q1 financial results at the start of May, HSBC promised to inform investors on the transaction. The Bank of England confirmed that the UK’s banking system remained unaffected by the recent events, in contrast to the turmoil in the USA: Neither these measures nor the resolution of the US parent bank of SVB UK immediately or materially affect any other UK institutions. The overall banking system in the UK is still stable and well-capitalized.

Stay with us for more daily crypto news. Comment your thoughts of these news on our social channels below

BarmySpace | Twitter | Telegram Channel | Group Chat | Youtube | Tiktok

Barmy VN Channel | Barmy VN Community