HSBC bought the British arm of the collapsed Silicon Valley Bank on Monday for one pound. "This acquisition makes excellent strategic sense for our business in the UK," HSBC CEO Noel Quinn said in a statement.
The action was taken after U.S. regulators took steps to protect depositors and contain any further repercussions of the parent company's abrupt failure, tech start-up lender Silicon Valley Bank.
According to HSBC, Silicon Valley Bank UK Ltd had loans totaling about 5.5 billion pounds as of March 10 and deposits totaling about 6.7 billion pounds.
According to HSBC, SVB UK's tangible equity is anticipated to be close to 1.4 billion pounds.
According to the bank, the transaction is immediate and is funded using already available funds.
Britain, in contrast to the US, has not revealed more extensive liquidity measures for the banking sector.
