There is a “serious risk” to the UK’s technology and life sciences sectors from the collapse of the UK branch of the California-based Silicon Valley Bank, Chancellor Jeremy Hunt has warned.
U.S. federal banking regulators on March 10 assumed control of Silicon Valley Bank (SVB), a top lender for American tech and life sciences firms and start-ups.
The collapse of SVB, the 16th biggest bank in the United States, is the largest bank failure since Washington Mutual in 2008, during the last major bank crisis.
The Bank of England (BoE), the UK’s central bank, announced on March 11 that Silicon Valley Bank UK (SVBUK) is also set to enter insolvency.
The company will stop making payments and accepting deposits, said the BoE.
Talking to Sky News on Sunday, Hunt said the collapse poses “no systemic risk” to Britain’s financial system.
But he said, “There is a serious risk to our technology and life sciences sectors, many of whom bank with this bank.”
Read more: UK Tech Firms Face ‘Serious Risk’ From Silicon Valley Bank Collapse, Chancellor Warns