UK Prime Minister Rishi Sunak said there is no “systemic risk” to British banks in the wake of the collapse of Silicon Valley Bank in the US.
(Bloomberg) — UK Prime Minister Rishi Sunak said there is no “systemic risk” to British banks in the wake of the collapse of Silicon Valley Bank in the US.
HSBC Holdings Plc bought SVB’s UK unit for £1 ($1.22) on Monday, the culmination of a frantic weekend where ministers and bankers explored various ways to calm markets and secure depositors’ money.
In an ITV interview on Monday, Sunak hailed the transaction as a “good outcome,” and said Chancellor of the Exchequer Jeremy Hunt and Bank of England Governor Andrew Bailey were right to say that “they don’t have any concerns about systemic risk” in the banking sector.
“Our banks are well capitalized,” Sunak said. “Liquidity is strong.”
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