HSBC’s CEO has allayed fears the Silicon Valley bank will not be focused enough or suspended plans to help UK startups.
The CEO of HSBC UK has said that the Silicon Valley bank UK will continue with its regular business of serving startups regardless of the new ownership. Ian Stuart said that Silicon Valley Bank would maintain its processes and business without any disruption.
At the Money 20/20 fintech conference in Amsterdam, Stuart assured CNBC’s Arjun Kharpal of protecting Silicon Valley Bank. They said:
“We’re going to keep it ringfence within our ringfence bank. It will have its own board, it will have its own risk policies. We are going to protect what we have got today.
The HSBC CEO was responding to general concerns about the acquisition. Many worry that a traditional financial institution like HSBC, a Silicon Valley bank, is not in the best position to offer services to the UK. The concern is particularly about HSBC’s funding of small businesses and tech startups in Silicon Valley.
Stuart assures that the customers will enjoy the same services without any difference. They said:
“We plan to take this from seed funding to IPO. Customers will never have to go outside that network to meet their funding needs.”
In addition, the CEO talked strategy. He said the plan is to “go global very quickly” with infrastructure in Israel, the Middle East and Asia, the US and the UK. according to sky news reportsHSBC will rebrand Silicon Valley Bank UK as “HSBC Innovation Banking”. The report states that HSBC will likely announce the new brand on June 12 as the start of London Tech Week.
HSBC acquires UK branch of Silicon Valley Bank for £1
HSBC Silicon Valley acquired Silicon Valley Bank UK following the recent collapse of the Silicon Valley parent. Official London Stock Exchange Timings AnnouncementAs of 2015, Silicon Valley Bank UK had deposits of around £6.7 billion and loans of around £5.5 billion. The bank’s tangible equity was estimated at £1.4 billion. In addition, the announcement said that the bank’s profit before tax for the financial year ending December 31, 2022 was 88 million pounds.
HSBC Silicon Valley Bank was one of the few institutions interested in the UK. The global clearing organization Bank of London also sent an offer to the failed bank and submitted offers to the Bank of England and the Treasury. Reportedly, OakNorth Bank, a subsidiary of SoftBank, was also interested in the acquisition along with Abu Dhabi Investment and Holding Company ADQ.
After the collapse, North Carolina-based First Citizens Bank acquired Silicon Valley Bank in the US. a US Federal Deposit and Insurance Corporation (FDIC) statement Noted that First Citizens will also receive all loans and deposits. The statement also said that the failure of the Silicon Valley bank would cost the FDIC’s Deposit Insurance Fund (DIF) about $20 billion.
First Citizens plans to reopen at least 17 former Silicon Valley branches as First Citizens Bank and Trust Company.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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