Silicon Valley rescue saves UK tech industry – but shares in other banks plummet

Regulators in the US closed the Silicon Valley Bank on Friday after depositors rushed to withdraw their funds all at once

Customers line up outside the Silicon Valley Bank headquarters in Santa Clara, California on Monday (REUTERS)

Britain’s tech industry was saved from a crisis on Monday after HSBC rescued the UK arm of Silicon Valley Bank in a deal brokered by the government and the Bank of England.

The £1 buy-up avoids the need for a taxpayer-funded bailout and secures the future of hundreds of firms put at risk by the collapse.

But despite reassurances from governments around the world about the low risk of further bank failures, stock markets were hit by fears that high interest rates may be crippling the banking sector.