UBS will take over Credit Suisse to avoid further turmoil in the global banking market, Swiss authorities said on Sunday evening, citing Reuters.
“With the acquisition of Credit Suisse by UBS, a solution has been found to safeguard financial stability and protect the Swiss economy in this exceptional situation,” the Swiss central bank and government officials said.
The Swiss central bank will provide a significant amount of funds to the combined bank, it was announced at a press conference in the capital SwitzerlandBernie.
The value of the transaction was not immediately disclosed. Previously, the Financial Times reported that it was over $2 billion.
Credit Suisse issues
Credit Suisse said on Thursday it would borrow up to 50 billion Swiss francs from the Swiss National Bank in a so-called “decisive action” to boost its liquidity. Credit Suisse shares lost a quarter of their value last week.
The problems of Credit Suisse, a global bank, have deepened the perturbations in the global financial sector after the recent collapse of the US Silicon Valley Bank.
Main photo source: EPA/JUSTIN LANE