Credit Suisse was forced into a government-backed merger during the 2023 banking-market turmoil.
On March 19, 2023, UBS agreed to acquire Credit Suisse in a transaction supported by the Swiss government, the Swiss National Bank, and financial regulators. The deal followed a rapid loss of confidence in Credit Suisse and aimed to prevent a broader destabilization of the international banking system.
Credit Suisse had faced years of scandals, losses, management changes, and weak investor confidence. In March 2023, turmoil following the failures of Silicon Valley Bank and Signature Bank made market participants especially sensitive to signs of financial weakness. Credit Suisse’s largest shareholder also said it could not provide additional capital under its rules, intensifying pressure.
UBS was the acquiring bank, not the one rescued. The Swiss National Bank supplied liquidity support, while the government provided a loss guarantee connected with the transaction. The episode was a banking crisis rather than a conventional stock-market crash, but it caused sharp market volatility worldwide.