Chancellor Jeremy Hunt cautioned on Sunday that the shuttering of Silicon Valley Bank poses a “serious risk” to Britain’s technology and life sciences industries.

According to Hunt, the SVB bank, located in California, which was shut down by US authorities on Friday, oversees the finances of some of the most promising enterprises in the UK.

“There is a serious risk to our technology and life sciences sectors, many of whom bank with this bank,” Hunt said in an interview with British television channel Sky News, as reported by France24.

“Most people won’t have heard of the Silicon Valley Bank but it happens to look after the money of some of our most promising and exciting businesses,” Hunt said.

It is anticipated that the bank will reopen on Monday with a new name, and the FDIC, the US deposit guarantee agency, assuming control.

Hunt mentioned that the governor of the Bank of England had affirmed that the SVB’s failure did not pose any systemic danger to the UK’s financial system.

The government would expedite its proposals “very soon” to ensure that individuals can fulfill their cash flow needs and remunerate their staff, as reported by France24.

In addition, Hunt stated that the government would establish a more permanent solution to mitigate or prevent any losses sustained by British enterprises.

Written by staff.