Swiss Banking Giants UBS and Credit Suisse Agree to Merger to Avoid Further Market Turmoil

Swiss banking giants UBS and Credit Suisse have agreed to a merger in order to avoid further market-shaking turmoil in the global banking system. The announcement was made Sunday by Swiss President Alain Berset, who did not specify the value of the deal.

The move comes in the wake of the recent banking turmoil, which saw the collapse of Silicon Valley Bank and Signature Bank, and the worst week for global banks since 2008. Everyday customers’ deposits are still guaranteed and regulators across the globe say the banking system remains healthy.

The Swiss government has agreed to guarantee a total of 150 billion francs of liquidity to the two banks, in order to ensure the stability of the international financial system. Berset said the merger was “one of great breadth for the stability of international finance”, and that an uncontrolled collapse of Credit Suisse would have had “incalculable consequences”.

UBS and Credit Suisse are two of the largest banks in Switzerland, and the merger will create a banking giant with a combined market capitalization of over $100 billion. The deal is expected to be finalized by the end of the year.

The merger of UBS and Credit Suisse is a sign of the times, as banks around the world look for ways to protect themselves from further market-shaking turmoil. While the global banking system remains healthy, the move is a precautionary measure to ensure the stability of the international financial system.