Financial regulators have been scrambling to undo the damage caused by the collapse of the Silicon Valley Bank (SVB) to avoid loss of confidence in the banking system.

After US authorities moved to secure deposits last Sunday,  HSBC (HSBA.L) bought the UK arm of SVB, a key lender for technology start-ups in Britain, for a symbolic one pound on Monday.

The UK government, regulators, and technology start-ups have welcomed the acquisition of SVB’s UK arm by HSBC. The deal ensures that customers of SVB UK will be able to continue banking as usual, providing relief to the start-up industry, which relied heavily on the tech lender for funding.

Britain’s finance minister, Jeremy Hunt, praised HSBC’s move, stating that Europe’s largest bank brings strength, safety, and security to the customers of SVB UK. Hunt also acknowledged the danger posed by the collapse of the tech lender’s parent company, which could have wiped out some of the UK’s most important and strategic companies.

The acquisition by HSBC is expected to have a significant impact on the UK’s technology start-up ecosystem. It is likely to attract more investors to the industry, providing much-needed funding to start-ups struggling to survive in the current market conditions. The move also highlights HSBC’s commitment to supporting the UK’s tech industry, which has become a crucial part of the country’s economy.

Overall, the acquisition of SVB UK by HSBC is seen as a win-win situation for all parties involved. The customers of SVB UK will benefit from the stability and security provided by HSBC, while the acquisition will further cement HSBC’s position in the market and support the growth of the UK’s technology start-up industry.