HSBC UK has agreed to scoop up the UK arm of Silicon Valley Bank (SVB) for the sum of one pound, easing fears over the bank's collapse.

SVB's US operations were shut down by regulations and its assets seized on 10 March - the largest failure of a US bank since 2008's financial crisis.

At the point of failure, SVBUK had a total balance sheet size of approximately £8.8bn, and a deposit base of approximately £6.7bn.

Noel Quinn, HSBC Group CEO, said: “This acquisition makes excellent strategic sense for our business in the UK. It strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the UK and internationally.

“We welcome SVB UK’s customers to HSBC and look forward to helping them grow in the UK and around the world. SVB UK customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC. We warmly welcome SVB UK colleagues to HSBC, we are excited to start working with them.”

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