The British government said on Monday that, with the assistance of the Bank of England, it had authorized a private sale of the United Kingdom branch of the collapsed Silicon Valley Bank to HSBC Holdings Plc for 1 pound sterling or approximately ₹99. HSBC's overall balance sheet is not likely to be impacted by the deal, but its domestic market exposure would increase, according to Sky News.
With more than 3,000 SVB UK customers having accounts totaling more than $US8.1 billion, the move secures their deposits. Over US$6.6 billion worth of loans are held by SVB UK.
HSBC CEO Noel Quinn said, “Acquisition makes excellent strategic sense for our UK business, SVB UK customers can bank as usual, safe in the knowledge their deposits are backed by the strength, safety, and security of HSBC.”
While on the other hand, UK finance minister Jeremy Hunt stated, “… 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 (it) brings them,".
© Vygr Media Private Limited 2022. All Rights Reserved.
