Credit Suisse Group AG (NYSE:CS) has agreed to borrow almost US$54bn (£44.5bn) from the Swiss central bank to reinforce the group's balance sheet after a plunge in its share price on Wednesday.
In a press release, Credit Suisse said the “decisive action” to borrow 50bn Swiss francs would "support... core businesses and clients", adding it was also making buyback offers on about US$3bn worth of debt.
"My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs," said chief executive Ulrich Koerner.
The Swiss National Bank said capital and liquidity levels at the lender were adequate for a "systemically important bank", even as it pledged to make liquidity available if needed.
Credit Suisse is one of 30 banks globally deemed too big to fail, forcing it to set aside more cash to weather a crisis.
“Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks,” the Swiss National Bank said.
Shares in the bank tumbled 24% at one point yesterday before rallying as its major shareholder, Saudi National Bank, effectively said it would not put in any more money.
Trading was halted several times during the morning session as the slide in the shares triggered circuit breakers on automated trades.
Worries over the health of the global banking system followed the collapse of US banks Silicon Valley and Signature over the weekend.
Both of these have been rescued by the US financial authorities, who have guaranteed depositors' money.
Credit Suisse also has a sizeable US presence and is a significant player in the UK bank sector in the City of London.
According to the BBC, the Bank of England has been in touch with Credit Suisse and the Swiss authorities to monitor the situation.