The Bank of England Endorses The Credit Suisse Agreement And Affirms The Safety Of UK Banks

The Bank of England welcomed moves by Swiss authorities to facilitate a takeover of Credit Suisse by UBS on Sunday, signaling that it would support the deal's approval and stating that the British banking system was adequately capitalized.

Swiss authorities arranged for UBS (UBSG.S) to acquire Credit Suisse (CSGN.S) for 3 billion Swiss francs ($3.23 billion) in stock and to assume up to 5 billion francs ($5.4 billion) in losses.

"We welcome the comprehensive set of actions outlined by the Swiss authorities today to support financial stability," the BoE said in a statement, adding that it would assist international counterparts in carrying out the actions.

"The British banking system is adequately capitalized and funded and remains secure."

London is a significant financial center, and both Swiss banks have branches in the United Kingdom that are governed by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority of the Bank of England (BoE). (PRA).

The FCA stated that it was "inclined to approve the actions announced today regarding the entities within its regulatory and supervisory remit."

The BoE's statement coincided with similar ones from the European Central Bank and the U.S. Federal Reserve, as well as a statement from the finance ministry of the United Kingdom.

A finance ministry spokesperson stated, "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."

Since the collapse of the U.S. bank Silicon Valley Bank earlier this month, British officials have sought to reassure investors about the health of the entire banking system.