The UK’s largest commercial banks have been given 24 hours to bail out bankrupt Silicon Valley Bank UK as the Bank of England prepares to declare it bankrupt, Sky News TV reported today.

Lenders such as Barclays PLC and Lloyds Banking Group are among the financial institutions SVB UK approached over the weekend to see if an emergency takeover deal could be struck, Sky News reported.

UK Chancellor of the Exchequer Jeremy Hunt said Sunday he is working with Prime Minister Rishi Sunak and Bank of England Governor Andrew Bailey to “avoid or minimize the damage” caused by the chaos engulfing Silicon Valley Bank’s UK arm.

Friday’s dramatic bankruptcy of U.S. tech startup bank SVB Financial Group was the largest in the U.S. since the 2008 financial crisis.

Given the bank’s importance to some clients, Hunt said its collapse could have a significant impact on UK tech companies.

“We worked hard over the weekend, all night,” Hunt told Sky News. “Very soon we will put forward plans to make sure companies can meet their cash flow needs to pay their staff.”

Hunt said efforts are focused on finding “a long-term solution that minimizes or even eliminates losses for some of our most promising companies.”

Advisory firm Rothschild & Co is exploring options for its UK arm, called Silicon Valley Bank UK Limited, two people familiar with the discussions told Reuters. The Bank of England said it is seeking a court ruling to file insolvency proceedings against the UK branch.

In addition, more than 250 British tech executives wrote to Hunt on Saturday calling for government intervention and warning of an “existential threat” to the UK tech sector, according to a copy seen by Reuters.

Hunt echoed comments from the Bank of England that, in general, the Bank of Silicon Valley has a limited presence in the UK and does not perform critical functions for the financial system.

The rush to find emergency support has been welcomed by tech companies and lobbying groups, including Codec startups, calling it “recognition of the scale of the problem.”

Labor Finance Minister Rachel Reeves urged Hunt to say more than “kind words” to companies, saying the government needs to come up with a plan by the time financial markets open on Monday morning.

British Prime Minister Rishi Sunak has said he wants to turn the UK into a “new Silicon Valley”. According to the government, the UK is second only to the US and China in terms of venture capital funding for the industry.

In the US, the Federal Deposit Insurance Corporation (FDIC) launched an effort over the weekend to find another bank willing to merge with Silicon Valley Bank, people familiar with the matter said in an effort to minimize the impact.

Some financial industry executives and investors are increasingly concerned that a bank failure could send dominoes to other U.S. regional banks if regulators don’t find a buyer over the weekend to protect uninsured deposits.

Source: Reuters.