The UK Treasury has confirmed that the British banking system remains strong and resilient, stating that the issues affecting Silicon Valley Bank are specific to that bank and have not impacted other banks operating in the UK.
A statement from the Treasury noted that it is working alongside the Bank of England to mitigate the potential effects of the US Silicon Valley Bank’s collapse, which operates using the name "SVB Financial," on its UK branch.
The statement highlighted that the government understands that technology sector companies often experience negative cash flows during their growth periods and that they rely on financing rather than deposits to cover their daily costs.
Under UK banking insolvency procedures, some depositors are entitled to compensation of up to £85,000 (approximately $102,000) for lost deposits, or £170,000 for joint accounts.
