Bank of England and Government respond to Treasury Committee on collapse and rescue of Silicon Valley Bank UK

22 March 2023

The Treasury Committee publishes correspondence from the Bank of England and the Government on the collapse and subsequent purchase by HSBC UK of Silicon Valley Bank UK (SVB UK).

The correspondence was received today and is published following the closure of the financial markets.

The letters respond to a series of questions posed by the Committee. The Bank was asked how SVB UK was supervised before its collapse, how HSBC was chosen as a purchaser, and what lessons can be learnt about the regulation of the banking sector.

The Economic Secretary to the Treasury was asked what other support options the Government was considering at the time of HSBC’s purchase, the extent to which the Treasury intervened in the resolution process in favour of a sale, and whether the Treasury sought assurances from HSBC on its approach to the UK tech industry as a condition of the purchase.

The response from the Governor of the Bank of England can be read here.
The response from the Economic Secretary to the Treasury can be read here.

The Governor of the Bank of England, the Chief Executive of the Prudential Regulation Authority and the Bank’s Deputy Governor for Markets and Banking will give evidence to the Committee on the collapse of SVB UK and wider stresses in the banking sector, including implications for the UK of the failure of Credit Suisse, at 9.45am on Tuesday 28 March.

Further information

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