Switzerland’s largest banks UBS and Credit Suisse which possess rivalry with each other are in talks to merge. UBS holds the upper hand over Credit Suisse so it will try to overtake the preceding bank and finalize the merging process.
Swiss regulators want UBS to crack ways to dilute Credit Suisse under their rule. The reports reveal that the decision is still to be finalized.
Source: Google
UBS and Credit Suisse: Swiss Banking Giants
The Swiss regulators want the two largest banks UBS and Credit Suisse to merge. However, they do not have the power to do it on their own so they have requested the banks to carry forward the procedure.
Both the banks however are still rimmed as they both resist merging concerning their reputation. However, Credit Suisse shares have hiked 9% after the reports of merging surfaced on the internet.
The news has also been sent as a shockwave of disaster for lenders across the world. Recently, various investors have damped their shares following the collapse of several smaller US lenders.
Source: Google
Conclusion from the Swiss Bank Merge
The swiss regulators and the central bank have been in close contact to process the dilution of UBS and Credit Suisse. As per reports, UBS might focus on its welfare and optimize its wealth-centric standalone.
On the other hand, Credit Suisse is looking forward to waiting for a while and claiming a $54 billion credit line from the central bank.
Source: Google
Also Read: All You Need to Know About the Collapse of Silicon Valley Bank!! Biggest Collapse in a Decade!!