To Protect Customer Deposit, SVB UK Will Be Sold To HSBC, The Food Crisis Is Getting Worse
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The SVB crisis triggered an avalanche of reactions throughout the world's banking system. Governments, financial institutions are doing what they can to minimize the damage. In addition to problems in the banking sextor, there will also be problems with food.
In this article:
- In protection of SVB UK customer deposits
- The changes
- Food crisis
- Stablecoins
In protection of SVB UK customer deposits
HSBC on Monday announced a deal to buy the UK subsidiary of US tech lender Silicon Valley Bank, which collapsed on Friday.
Plenty of potential buyers have made bids to buy SVB UK since the bankruptcy of its US parent company on Friday, amid widespread fears about the immediate future of many UK tech and life sciences start-ups.
HSBC UK Bank has agreed to acquire SVB UK for £1 ($1.21). The assets and liabilities of the parent company SVB UK are excluded from the transaction.
The sale, facilitated by the Bank of England in agreement with the UK Treasury, will protect SVB UK customer deposits. In addition, U.S. regulators on Sunday approved plans to protect depositors and financial institutions affiliated with U.S. parent company SVB.
HSBC buys Silicon Valley Bank UK, protecting deposits https://t.co/FeR6RZEecF
— Ted Kemp (@TedKempCNBC) March 13, 2023
The changes
President Xi Jinping is preparing to change the financial bureaucracy, already replacing members of the shrinking reformist camp in the country.
Surprisingly, PBOC Governor Yi Gang, a proponent of market reform who taught economics in the United States, remained in office despite reaching the official retirement age.
However, his eventual replacement by someone more parochial like Zhu seems inevitable.
From Breakingviews - China central bank punts its succession problem https://t.co/jfuJF2QIeG
— Reuters Business (@ReutersBiz) March 13, 2023
Food crisis
One year after Russia's invasion of Ukraine shook agricultural commodity markets, food prices remain high. Moreover, as the world's two largest exporters of wheat and other key crops enter their second year of war, many vulnerable countries continue to face heightened food insecurity.
The IMF and other global institutions said in a recent Joint Statement on Food Security that governments and donors must increase support for the most vulnerable, facilitate trade and market functioning, and end harmful subsidies.
Global food prices remain high even after dropping from the record level reached early last year on Russia’s invasion of Ukraine. See our Chart of the Week blog for more: https://t.co/70ubEeRD80 pic.twitter.com/xW8WoNi1Qk
— IMF (@IMFNews) March 12, 2023
Stablecoins
As the world of finance becomes increasingly digital, digital currencies are taking center stage in the financial sector. Stablecoins have gained considerable popularity in recent years thanks to their ability to provide the benefits of both digital currencies and traditional fiat currencies.
Analyzing the percentage composition of the stablecoin portfolio among respondents holding stablecoins, the number of owners decreases as the size of the stablecoin portfolio increases. A survey of 392 stablecoin holders revealed that the most commonly held stablecoins are: USDT (80.3%), USDC (50%) and BUSD (50%).
You can learn more about stablecoins from the summary of the survey.
1/ What are the most commonly held #stablecoins among stablecoin owners? 🪙
— CoinGecko (@coingecko) March 13, 2023
Our recent survey with @lab_blockchain revealed that the most commonly owned stablecoins are: $USDT (80.3%), $USDC (50%) and $BUSD (50%).
Read the full report: https://t.co/nBN8ufuKtQ pic.twitter.com/bMCTQLVzJ2
