Swiss bank accounts were once associated with security and privacy, but Switzerland's second largest lender Credit Suisse has been facing a crisis for a while. The bank's stocks, which had already crashed by 70 per cent in a year, were hit by another rout following the Silicon Valley Bank collapse.
Although it is borrowing $54 billion relief from the Swiss Central Bank, Credit Suisse is also exploring a merger with the country's biggest lender UBS.
A unified Swiss force on the cards?
The two banks are reportedly set to meet for discussions for UBS to take over and rescue its embattled peer.
Although regulators are rooting for the deal, reports suggest that both banking giants aren't keen on becoming one entity.
The possibility of the two biggest Swiss banks merging triggered a 10 per cent share for Credit Suisse, which had tumbled on the stock markets again after jumping 30 per cent on reports of credit support.
Troubles catch up with Credit Suisse
For years Credit Suisse has been haunted by links to a bankrupt fund and deposits by drug cartels as well as people who benefit from corruption and torture.
The SVB crisis affecting lenders across the US and Europe came as the last straw, which has left the Swiss bank scrambling to stay afloat.
The final blow came from Saudi National Bank, which bought a stake in Credit Suisse in November 2022, but refused to invest more after losing $500 million within months.
The regulator wants a merger between UBS and Credit Suisse, but doesn't have authority to force the two for it.
The Swiss peer is the only hope for Credit Suisse, after four European banks including Deutsche and Societe Generale, have restricted trades involving it.
The 167-year-old bank has failed to restore investor confidence, as its American peers also struggled to convince markets despite support from US Federal Reserve.
