Silicon Valley Bank’s British subsidiary will be acquired by the banking giant HSBC, the Bank of England announced on Monday as it emphasized the stability of the nation’s banking system.
“This action has been taken to stabilize SVBUK, ensuring the continuity of banking services, minimizing disruption to the U.K. technology sector and supporting confidence in the financial system,” the central bank said in a statement, referring to the American bank’s British subsidiary. “The wider U.K. banking system remains safe, sound, and well capitalized.”
The announcement came just hours after Prime Minister Rishi Sunak of Britain assured investors and the general public that the country’s financial system was in good health and would not suffer from the demise of Silicon Valley Bank in the United States.
“There’s nothing to worry about there,” Mr. Sunak told reporters on Sunday in San Diego. He added that Britain’s financial system is “sound” and “resilient.”
Mr. Sunak is in San Diego to meet with President Joe Biden and Prime Minister Anthony Albanese of Australia on Monday to discuss a defense deal.
Vivek Shankar contributed reporting.
