For the Treasury it is “a high priority”
UK Prime Minister Rishi Sunak and Chancellor Jeremy Hunt are expected to hold talks with the Governor of the Bank of England in response to the collapse of Silicon Valley Bank UK. In a statement released Sunday morning, the Treasury said it viewed the issue “as a high priority.”
“The Government is working apace on a solution to avoid or minimize damage to some of our most promising companies in the UK and we will present immediate plans to ensure that the short-term operational and cash flow needs of the company’s customers Silicon Valley Bank UK are satisfied,” the statement read. “The government and the bank understand the level of concern this raises for Silicon Valley Bank UK clients, and especially how could have an impact on short-term cash flow positions“.
The note notes that the government acknowledges that the failure of Silicon Valley Bank UK (SVBUK) “could have a significant impact on the liquidity of the technology ecosystem”. The Bank of England announced on Friday that Silicon Valley Bank UK was about to enter into insolvency, following action taken by its parent company in the United States. Although Silicon Valley Bank (SVB) has a limited presence in the UK and does not perform critical functions for the financial system, the Coalition for a Digital Economy (Coadec) has warned that its collapse could have a significant impact on tech start-ups .