What you need to know
SVB, the U.S.’s 16th largest bank, was closed on Friday, 10 March, 2023 and the FDIC was appointed as receiver. SVB’s UK operations were conducted through its subsidiary, Silicon Valley Bank UK Limited (SVBUK). On Monday, 13 March 2023, HSBC UK Bank PLC bought the UK subsidiary for £1 with the deal announced at 7 a.m. (GMT) before markets opened. The Bank of England used special bank resolution powers under the Banking Act 2009 to effect the sale and has provided a temporary waiver from the UK’s ringfencing regime. Following the acquisition, HSBC and SVBUK have stressed that they intend to continue business as usual for SVBUK’s clients, including depositors and borrowers.
The UK Position
SVB UK has been acquired by HSBC UK Bank PLC. The transfer took place at 7 a.m. (GMT) on Monday, 13 March 2023. Following the transfer, SVB UK continues to operate as normal under new ownership as part of the HSBC group. Customers can access their deposits and draw down on existing facilities as normal.
Please visit our Topic Center: Addressing legal implications of the Silicon Valley (SVB) and Signature Bank Collapses for timely updates and helpful resources, including a recording of our webinar "Implications of the fall of Silicon Valley Bank" hosted on 13th March.
Questions and concerns in relation to SVB, SVBUK, and Signature Bank may be directed to the Silicon Valley Bank (SVB) Task Force email at SVBTaskForce@hoganlovells.com. Please register here to receive timely updates and information on upcoming events hosted by our Task Force.
