'We can look our teams in the eye ... and say, not only will we be able to make next payroll but we can continue business as usual,' said one startup founder.
SVB UK was set to enter insolvency after its U.S. parent company collapsed, sparking talks between the U.K. government, Bank of England and other parties in an effort to avert a crisis spreading through the tech sector.
The bosses of more than 200 tech companies had written to the government on Saturday calling for intervention. "They have saved hundreds of the U.K.'s most innovative companies today," Dom Hallas, executive director of U.K. start-up association Coadec, said in a statement.Finance Minister Jeremy Hunt had said in a statement Sunday that while SVB had a "limited presence" in the U.K., the situation was concerning for all SVB UK customers and would impact short-term cashflow positions.
SVB UK has loans of around £5.5 billion and deposits of around £6.7 billion, according to HSBC. Its parent company, SVB, has roughly $209 billion in total assets and $175.4 billion in total deposits.In a Tweet on Monday, Hunt said the government and Bank of England had "facilitated a private sale of Silicon Valley Bank UK to HSBC," adding that "deposits will be protected, with no taxpayer support.
The Bank of England added that SVB UK's business would "continue to be operated normally," and that customers should not notice any changes and should continue to contact the bank through usual channels and make loan repayments as normal. The bank remains authorized by U.K. financial regulators.
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