Statement on Silicon Valley Bank

The Prudential Regulation Authority, PRA, has published a press statement in view of the recent bank failure of the U.S. Silicon Valley Bank.
In its statement, the PRA informs that – together with the Financial Conduct Authority (FCA) and the HM Treasury – it has decided to sell the UK subsidiary of the Silicon Valley Bank, the Silicon Valley Bank UK Limited (SVBUK), to HSBC UK Bank Plc (HSBC) which made a corresponding offer. As a consequence of this sale, SVBUK will continue to operate as usual, offering its usual banking services to the public. The transaction ensures that no material disruption will take place, neither in the UK banking market, nor in the technology sector. It shall also restore confidence in the market.
Finally, the PRA notes that all deposits at the SVBUK are safe and that UK banks are NOT materially affected by this transaction or the resolution of the Silicon Valley Bank in California. The UK banking system „remains safe, sound, and well capitalised“.