A statement by the British Ministry of Finance stated that the ministry and the Bank of England are working together to limit the potential effects of the collapse of the US Silicon Valley Bank - the name used by the "SVB" financial group in its activities - on the bank's branch in Britain.
The statement added that officials from the ministry and the bank are working closely together to discuss the problems faced by British technology companies affected by the collapse of the bank.
"The government is aware that companies in the technology sector often have negative cash flows during their growth, and that they depend on financing in exchange for deposits to cover their daily costs," he said.
The Ministry of Finance added that the British banking system remains strong and resilient, noting that the issues affecting Silicon Valley bank belong to the bank itself, and have not had an impact on other banks operating in the country.
And the ministry confirmed - yesterday, Saturday - that the problems of "Silicon Valley Bank are specific and have no implications for other banks operating in the United Kingdom."
The assets of the US Silicon Valley Bank amount to about $ 200 billion (Getty Images)
bankruptcy procedures
The Bank of England said on Friday that it was seeking a court order to place the US bank's subsidiary in bankruptcy proceedings after US regulators acquired the parent company, SVB Financial Group.
Under Britain's bank insolvency procedures, some depositors are entitled to up to 85,000 pounds ($102,000) in compensation for lost deposits or 170,000 pounds for joint accounts.
And California banking regulators closed the day before yesterday, the “SVB” financial group, in the largest banking collapse since the global financial crisis in 2008, and moved quickly to protect depositors in the bank.
And US Treasury Secretary Janet Yellen summoned a number of financial sector regulators on Friday to discuss the situation, and assured them that she had "full confidence" in their ability to take appropriate measures, and believed that the banking sector remained resilient.
The American bank was no longer able to handle the massive withdrawals of its customers, especially technology companies, and its recent attempts to raise new funds were unsuccessful.
The US Silicon Valley bank is the 16th largest bank in America with assets of $ 200 billion, and it is also a major lender to large startups in the technology sector in Silicon Valley in California.
The bank's deposits have more than doubled in 4 years, from $44 billion in 2017 to $189 billion at the end of 2021, while its loans to startups have grown from $23 billion to $66 billion.