The collapse of Silicon Valley Bank has shown the need to build a larger and more diverse financial system by bolstering the stock market and unlocking cash in pension schemes, Britain's finance minister Jeremy Hunt said today.
Following the collapse of its parent company in the United States, Silicon Valley Bank's UK arm was sold to HSBC over the weekend to avoid disrupting its customers in Britain.
Fallout from the collapse continued to roil banking shares in Europe today.
Hunt said he would make a statement in the autumn on how the UK financial system would be strengthened.
"It will include measures to unlock productive investment from defined contribution pension funds and other sources, make the London Stock Exchange a more attractive place to list, and complete our response to the challenges created by the US Inflation Reduction Act," Hunt told parliament in a budget statement.
City Minister Andrew Griffith has said that an accounting rule for defined contribution pension funds has become a "performance penalty" which holds back investment in Britain.
A decision by UK chip designer Arm to only list in New York has dismayed the City, triggering calls for faster reforms to help the capital compete better with leader New York in global tech listings.