Swiss bank UBS has agreed to rescue its struggling domestic rival Credit Suisse. Negotiations aimed at avoiding the bankruptcy of Credit Suisse were completed with the support of the Swiss government.
UBS, Credit Suisse and Swiss financial regulators held emergency talks over the weekend about rescuing Credit Suisse. Later, UBS announced that it had agreed to acquire it for $3.15 billion (about 420 billion yen).
The Swiss National Bank (SNB) said the deal was the best way to restore confidence in financial markets and manage risks to the economy.
Although it has calmed down for a while, it is assumed that confidence in Swiss banks will be shaken. Assuming that funds will flow out of Switzerland in the future, we believe that CHF will weaken for the time being.