HSBC Granted Ring-Fencing Waiver to Help Smooth SVB Deal

The UK government cleared the way for HSBC to buy Silicon Valley Bank by waiving certain restrictions. The concession was one of the terms of the deal, and HSBC is buying the business without taxpayer support.

March 13, 2023 . 6:37 PM

1 min read

The UK government cleared the way for HSBC Holdings Plc to buy the British arm of Silicon Valley Bank by waiving certain restrictions on what types of customers could be taken on by its UK retail bank.
HSBC was given an exemption over rules that do not allow complicated corporate customers to be housed within ring-fenced banks.
Ring-fencing requires banking groups to separate their retail banking services from their investment and international banking activities.
The concession was one of the terms of the deal thrashed out between the Treasury and HSBC overnight and announced just before markets opened.
In a major win for the government, HSBC is buying the business without taxpayer support.