Switzerland's largest bank UBS Bank is in talks to buy its rival and Switzerland's second largest bank, Credit Suisse.
The latter reported that its shares have fallen significantly over the past few days. For this reason, it received a loan of 54 billion dollars from the National Bank of Switzerland.
But even after this loan, it seems that the issue has not been resolved. Credit Suisse is facing a lack of confidence from investors. It is believed that the bank's shares may continue to fall.
Reuters reports that the UBS bank has asked the Swiss government to cover a cost of about 6 billion dollars if it buys the Credit Suisse bank. In case of any agreement, this would also mean job cuts.
Credit Suisse is one of the largest banks in the world and the second largest in Switzerland.
The concern of investors is whether this situation heralds a global financial crisis. The problems with Credit Suisse also come after the bankruptcy of two banks in the US.
The Swiss government held an emergency meeting on Saturday evening, but has not issued an official statement.