Federation of Swiss Banks: The Credit Suisse deal came at a difficult time for the financial system
The Federation of Swiss Banks welcomed the UBS takeover of its rival Credit Suisse, which was brokered by the government and the central bank to ensure the stability of the financial system, as it sees it as coming at a difficult time.
The federation said in a statement on its website that the deal, along with the measures taken by the Swiss National Bank and the federal authorities to support the banking sector, was “logical”.
He added, “The acquisition guarantees the stability of the Swiss financial center, gives officials sufficient time for the necessary regulation and restructuring, and enhances confidence on the part of customers.”
He pointed out that the current situation is difficult and complex for the Swiss financial system, adding that events follow very quickly, and therefore measures to maintain stability are welcome.
Over the weekend, UBS reached an agreement with the government and regulatory authorities to take over cash-strapped Credit Suisse for CHF3 billion (3.2 billion).
The Swiss Central Bank said that the acquisition constitutes a solution to achieve financial stability and protect the economy, and pledged to provide financing to the two banks, after it announced earlier, before the deal, a loan of 50 billion francs to “Credit Suisse.”
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