International investment bank UBS Group AG has entered into an agreement to buy rival Swiss bank Credit Suisse.
Source: Reuters with reference to the Swiss authorities
Details: The Swiss Central Bank will provide significant liquidity to the combined bank. This agreement was a solution to ensure financial stability and protect the Swiss economy in an exceptional situation.
The amount of the deal has not yet been made public. Earlier, the Financial Times wrote that it is more than $ 2 billion.
The weekend talks are a continuation of efforts by Europe and the United States to support the banking sector after the collapse of US lending banks Silicon Valley Bank and Signature Bank. The administration of US President Joe Biden decided to support consumer deposits, and the Swiss central bank provided billions of loans to Credit Suisse to stabilize its balance sheet.
Since Credit Suisse is one of the world’s 30 banks considered systemically important, a deal with it could shake up global financial markets.
What came before: International Investment Bank UBS AG considered the possibility of taking over its struggling Swiss rival Credit Suisse to stabilize the global banking system.
In addition, the Swiss authorities considered full or partial nationalization Credit Suisse as the only viable option other than a takeover by UBS Group.
