SVB UK continuing to service UK tech sector
The UK arm of the failed Silicon Valley Bank is reportedly continuing to offer loans to customers in the tech sector and letting them access its services as usual.
The continuation of SVB UK’s service is good news for its customers in the tech sector – between 30 per cent and 40 per cent of UK start-ups, employing up to 50,000 people, could have been affected by the collapse. HSBC bought SVB UK for £1 on 10 March.
The bank allowed a client to access cash as part of a pre-existing loan on 14 March, according to one message from SVB UK staff seen by technology magazine Sifted.
Another message said that SVB UK would continue as a standalone entity within HSBC and operations would continue as before, for now.
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SVB UK also approved a new credit line to a fintech client yesterday and is pushing to sign off on the deal next week, according to one source with direct knowledge of operations at the bank, cited in the report.
SVB UK had loans of around £5.5bn and deposits of around £6.7bn (as at 10 March 2023). For the financial year ending 31 December 2022, SVB UK recorded a profit before tax of £88m.
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In a tweet on 13 March, HSBC said following its acquisition it was “resuming normal operations”. It said: “Our clients should not notice any significant changes, however, there may be short delays across the next few days as we return to business as usual.”
One former employee of the SVB UK told Sifted that it might be “business as usual for now”, but HSBC still needs “to figure out exactly what it’s bought”.
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