Banking crisis: UBS offered to buy Credit Suisse, shares of both boomed
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New Delhi : After the bankruptcy of America’s 16th largest Silicon Valley Bank (SVB), a new crisis has arisen in the world’s banking sector and one after the other big banks and financial institutions are seen collapsing. At present, the matter is of the troubled Credit Suisse Bank of Switzerland. UBS offers to buy Switzerland’s troubled Credit Suisse bank. After this, there was a strong decline in the shares of both. According to media reports, with the aim of preventing the upheaval in the global banking system, UBS, one of the world’s leading financial companies, announced the purchase of Switzerland’s troubled bank Credit Suisse for about $ 3.25 billion. After this, the share of Credit Suisse fell by 63 per cent and that of UBS by 14 per cent.
Credit Suisse said last Thursday that it would take a loan of up to $54 billion from the Swiss Central Bank (central bank) after its shares fell. However, even this did not reassure the bank’s customers and investors. After this, the Swiss authorities requested UBS to take over the troubled bank. Swiss President Alain Barset said the deal was a major step forward for the stability of the international financial sector.
what is the matter
Following media reports, one of the world’s leading financial companies, UBS, has announced the purchase of Switzerland’s troubled bank Credit Suisse for about $3.25 billion. Credit Suisse said on Thursday that it would take a loan of up to $ 54 billion from the Swiss Central Bank (Central Bank) after its shares fell. Swiss authorities requested UBS to take over the troubled bank.
Credit Suisse collapses
Swiss President Alain Barset said the deal was a major step forward for the stability of the international financial sector. He said that an uncontrolled collapse of Credit Suisse would have created huge problems for the country and the international financial system. The country’s executive branch and the seven-member governing body have issued an emergency ordinance, allowing bank mergers without shareholders’ approval. Credit Suisse Chairman XL Lehman described the deal as a game changer. UBS Chairman Kom Kelleher said that this acquisition will give rise to immense possibilities.
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