The bankruptcy of the Californian Silicon Valley Bank threatens to put at “serious risk” the technology sector and companies in the health sector of the United KingdomEconomy and Finance Minister Jeremy Hunt warned on Sunday.
US authorities closed the bank on Friday to protect its clients’ deposits.
The California-based entity manages money for some of the UK’s most promising companies, Hunt said.
“There is a serious risk to our technology and life sciences sectors, many of which bank with this bank,” Hunt said in an interview with British television channel Sky News.
The United States authorities will reopen the institution on Monday under another name and under federal control.
Hunt claimed that hehe governor of the Bank of England made it “very clear” that there was no systemic risk to the UK financial system.
The government will present plans “very soon” to ensure that citizens can meet their liquidity needs and pay their staff.
The executive will also implement a longer-term solution to minimize or avoid losses for British companies, he added.
The British Treasury insisted on Saturday that the problems of the SVB bank they were “company specific” and had “no implications for other banks operating in the UK”.
The Californian entity, specialized in the technology sector, went bankrupt after its clients made massive withdrawals. His latest attempt to raise new funds was unsuccessful.
Prepared with information AFP.
Source: Gestion
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