Business & Economy

UK banking system ‘safe and sound,’ says Bank of England

London, Mar 20 (EFE).- The Bank of England has welcomed the Swiss government-brokered deal of UBS taking over the crisis-hit Credit Suisse, noting that the British banking system was “safe and sound” amid fears of a possible global banking crisis.

“We welcome the comprehensive set of actions set out by the Swiss authorities in order to support financial stability,” the BoE said in a statement.

“We have been engaging closely with international counterparts throughout the preparations for (the) announcements and will continue to support their implementation,” said the statement.

The statement came after UBS agreed to acquire Credit Suisse in a Swiss government-brokered deal.

As per the deal, UBS would pay $3.2 billion to buy the 167-year-old Credit Suisse.

Swiss confederation has offered a guarantee equivalent of more than $9.6 billion to reduce the risks that UBS incurs on acquiring Credit Suisse, Swiss Finance Minister Karin Keller-Sutter said.

Credit Suisse experienced its blackest trading day last Wednesday, losing a quarter of its stock value with its shares dropping to a historic low, falling below 2 Swiss francs ($2.16) for the first time.

It was affected by the crisis that broke out in the United States due to the fall of the Silicon Valley bank.

The crisis has sparked fears in the global banking sector.

Allaying the fears, the BoE said that the banking system in the United Kingdom was “well capitalized and funded, and remains safe and sound.” EFE


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