Credit Suisse Crisis: The sound of global banking crisis was heard with the collapse of America’s Silicon Valley Bank and now many countries are continuously facing financial concerns. The latest example in this episode is from Credit Suisse Bank of Switzerland. The news of its facing huge problems put its investors in worry. However, a new news is now coming out in this episode which can prove to be a relief for the banking system and investors. The Swiss National Bank is carrying out this initiative as part of efforts to restore confidence in Switzerland’s banking sector.
UBS to takeover Credit Suisse!
According to the report of the Financial Times, it has been reported that Switzerland’s second largest bank Credit Suisse may take over some part or the whole bank by UBS. Switzerland’s largest bank UBS (UBS) has started talks for this. The board of UBS Bank is in talks with the board of troubled Credit Suisse Bank and it is reported that Switzerland’s central bank Swiss National Bank and regulator FINMA are conducting these talks.
< h3 style="text-align: justify;">Credit Suisse shares fall heavily
Earlier in the same week, news has also come that Credit Suisse will take a loan of $ 5400 million ($ 54 billion) from the central bank of Switzerland, but despite this, its shares have to bear the brunt of Credit Suisse’s deteriorating financial condition. Shares of Credit Suisse fell 7 per cent on Friday and have lost 24 per cent in the entire trading week.
Countries shaken by the sound of the global banking crisis
If Credit Suisse also sinks after the collapse of Silicon Valley Bank and Signature Bank in America, then it will be the third largest bank which will shock the markets around the world. To prevent this from happening, the Swiss National Bank of Switzerland and the banking regulator FINMA are conducting serious discussions very closely and in depth to complete this deal. Although at present both UBS and Credit Suisse banks have refused to comment on the matter.
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