Credit Suisse sale calms markets

Investors welcomed the takeover of Swiss bank Credit Suisse by rival UBS, as the world’s major central banks took an extraordinary step to provide emergency liquidity to the financial system, alleviating concerns that a crisis was brewing. world banking in the markets.

Over the weekend, UBS Group bought rival Credit Suisse for 3 billion Swiss francs, as part of a package prepared by Switzerland’s regulatory agencies, and took on the bank’s $5.4 billion of debt.

CENTRAL BANK SWAP STEPS

In addition, the major central banks have introduced measures to provide emergency liquidity support so that investors do not lose confidence in the global financial system. Central banks prevented the flow of cash between countries from bottlenecking with the currency swap facility they introduced.

The purchase of Credit Suisse, which was forced by the Swiss state and brought state guarantees to UBS, also averted the biggest bank failure seen since the global financial crisis that began with the collapse of Lehman Brothers in 2008-2009.

THE MARKETS ARE SATISFIED

With the markets opening today, Credit Suisse’s operations are seen to continue without any problems, while banking regulators in Asian countries said that market indicators do not indicate any problems at the moment.

Although the Asian stock markets have registered a limited recovery, investors are attentive to the possible spread of problems from different countries to other countries and the situation of the fragile medium-sized banks in the US. (REUTERS)