On March 19, local time, Swiss banking giant UBS Group bought troubled rival Credit Suisse for 3 billion Swiss francs (about 22.323 billion yuan), and took a loss of up to 5.4 billion US dollars (about 37.2 billion yuan).

The deal is backed by a substantial guarantee from the Swiss government and is expected to close by the end of 2023.

Shortly after the announcement, the U.S. Federal Reserve, the European Central Bank and other major central banks issued statements to calm volatile markets following the banking crisis triggered by the failure of two regional U.S. banks earlier this month.

Credit Suisse is one of 30 financial institutions known as globally systemically important banks, and Swiss authorities are concerned about the consequences of its failure.

Founded in 1856, Credit Suisse has 167 years of history and has a significant influence in the global capital markets. In February, Credit Suisse announced a net loss of 7.3 billion Swiss francs for 2022, its second straight year of net losses. On March 14, Credit Suisse issued a report alleging "material weaknesses" in the bank's internal controls over financial reporting.

Credit Suisse has been battling a series of losses and scandals, and recent crises at Silicon Valley Bank and Signature Bank in the United States have once again hit market sentiment and sent shares sliding.

Ubs Chairman Colm Kelleher called the acquisition a "huge opportunity" and stressed his bank's "conservative risk culture" - a subtle swipe at Credit Suisse's reputation for "swashbuckling, aggressive gambling" in search of bigger returns.