By Daniel Lanyon on Saturday 11 March 2023
Speculation over a potential bailout of Silicon Valley Bank UK is rising.
Jeremy Hunt, the UK’s Chancellor of the Exchequer, has held talks with Andrew Bailey, the governor of the Bank of England regarding Silicon Valley Bank UK.
"The government recognises that tech sector companies are often not cashflow positive as they grow and that they rely on cash on deposits to cover their day to day costs." UK Government statement today.
Despite a statement from the Silicon Valley Bank UK yesterday afternoon, the UK’s central bank placed SVB into insolvency proceedings shortly after meaning it has at least temporarily ceases trading.
This would mean eligible depositors are paid out by the Financial Services Compensation Scheme up to £85,000 or up to £170,000 for joint accounts.
SVB UK like its parent company has many clients in the tech and startup space.
HM Treasury says it has been speaking to firms affected and is encouraging others to get in touch.
Speculation is rising over a potential bailout of Silicon Valley Bank UK.
21 March 2023
Daniel Lanyon