- Swiss crisis delivers Credit Suisse to UBS at balance price to avoid its collapse in the midst of the banking crisis
Major central banks offer seven-day dollar liquidity in daily trading from March 20 through the end of April.
The European Central Bank (ECB) announced on Sunday a coordinated action together with the Bank of Canada, the Bank of England, the Bank of Japan, the Federal Reserve (Fed) and the Swiss National Bank to provide liquidity through dollar currency exchange line agreements.
"To improve the effectiveness of swap lines in providing dollar financing, central banks that already offer these operations have decided to increase the frequency of maturing operations to seven days from weekly to daily," the ECB said in a statement.
Daily refinancing operations in dollars maturing at seven days will begin on March 20 and will last at least until the end of April.
On Sunday, the ECB praised the swift intervention of the Swiss authorities in favor of financial stability by endorsing the absorption of Credit Suisse by its competitor UBS.
The action "has been decisive to restore order in market conditions and ensure financial stability," ECB President Christine Lagarde said in a statement after learning of the decision of the Swiss authorities.
From Geneva it was reported that the UBS bank will pay only in shares the equivalent of 3,000 million Swiss francs (3,030 million euros) to stay with Credit Suisse, which until today was considered the second most important banking establishment in Switzerland and that will become a subsidiary of the first.
According to The Trust Project criteria
- Credit Suisse
- Christine Lagarde