HSBC is buying the UK arm of the failed Silicon Valley Bank, the Government announced this morning.

Customers and businesses who have money deposited in SVB UK will be able to access it as well as other banking services as normal, a statement said.

The Treasury said the deal with HSBC involved no taxpayer money. HSBC has acquired the UK subsidiary of the US bank for £1.

Noel Quinn, HSBC Group chief executive, said UK customers of SVB could "continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC".

The deal comes after SVB - which specialised in lending to technology companies - went bust in America on Friday in the largest failure of a US bank since the financial crisis in 2008.

Its collapse sent shockwaves across the tech industry over the possible impact it could have on businesses, with some UK firms telling the BBC they could go bust if deposits were not secured.

No risk

Chancellor Jeremy Hunt said there was no risk to the UK's financial system from the collapse of SVB.

The bank's UK subsidiary was put into insolvency yesterday.

More than 200 bosses of UK tech companies had signed a letter addressed to Mr Hunt on Saturday calling for the government to step in.

SVB collapsed in the US after failing to raise £1.9billion to plug a loss from the sale of assets, mainly US Government bonds, which were affected by higher interest rates.

On Sunday, the US Government said people and businesses who had money deposited in SVB would be able to access all their cash from today.

It was the banking partner for nearly half of US venture-backed technology and healthcare companies that listed on stock markets last year.

Markets hit

Top stock markets in the US had a bad day on Friday, as investors digested the SVB news.

The tech-heavy Nasdaq ended the day down 1.7%, while the S&P 500 dropped 1.4% and the Dow closed 1% lower.

Major European and Asian indexes were also in the red.

FTSE 100

The UK's top share index, the FTSE 100, was down 22 points at 7,725 shortly after opening this morning, following Friday's 131-point loss.

Brent crude futures were 0.51% higher at $83.20 a barrel.

Companies reporting today

  • Full-year results: Direct Line Insurance Group, HG Capital Trust, Phoenix Group Holdings.

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