Bank of England welcomes Credit Suisse deal, says UK banks are safe
Sign up now: Get ST's newsletters delivered to your inbox
The headquarters of Swiss banks Credit Suisse and UBS in Zurich, Switzerland. UBS has agreed to buy its rival for $4.3 billion in stock.
PHOTO: EPA-EFE
Follow topic:
LONDON – The Bank of England (BoE) welcomed moves by the Swiss authorities to broker a takeover by UBS of Credit Suisse
UBS agreed to buy rival Swiss bank Credit Suisse for three billion Swiss francs (S$4.3 billion) in stock and assume up to five billion Swiss francs in losses in a merger engineered by the Swiss authorities.
“We welcome the comprehensive set of actions set out by the Swiss authorities today in order to support financial stability,” the BoE said in a statement, adding it would support international counterparts in implementing the actions.
“The UK banking system is well capitalised and funded, and remains safe and sound.”
London is a major financial centre, and both Swiss banks have units based in Britain which are regulated by the Financial Conduct Authority (FCA) and the BoE’s Prudential Regulation Authority (PRA).
The FCA said it was “minded to approve the actions announced today in relation to the entities which fall under its regulatory and supervisory remit”.
The BoE’s statement coincided with similar ones from the European Central Bank and the US Federal Reserve, as well as a statement from Britain’s Finance Ministry.
“The UK government welcomes the steps taken today by the Swiss authorities in relation to Credit Suisse to support financial stability, and will continue to engage with the FCA and the Bank of England as usual,” a Finance Ministry spokesman said.
British officials have sought to reassure investors about the health of the broader banking system since the collapse of United States lender Silicon Valley Bank earlier in March. REUTERS
