Global banking crisis: what you need to know

Credit Suisse has headed into a make-or-break weekend after some rivals grew cautious in their dealings with the struggling Swiss lender, and its regulators urged it to merge with UBS AG.

At least four major banks, including Societe Generale and Deutsche Bank, are restricting new trades involving Credit Suisse or its securities, five sources told Reuters.

DEVELOPMENTS

* Credit Suisse shares jumped nine per cent in after-market trading after the Financial Times reported UBS was in discussions to take over all or parts of its Swiss rival as the boards of the two banks were set to meet separately at the weekend.

* SVB Financial Group filed for a court-supervised reorganisation under Chapter 11 bankruptcy protection to seek buyers for its assets, days after regulators took over its former unit Silicon Valley Bank.

* Credit Suisse had more than $US450 million ($A666 million) in net outflows from its United States and European managed funds from Monday to Wednesday, Morningstar Direct said.

* Moody’s downgraded First Republic Bank’s debt. Before the announcement, the bank’s shares plunged almost 33 per cent, capping an 80 per cent wipeout for the past 10 sessions, despite a rescue package with $US30 billion ($A44 billion) in deposits injected by large US banks.

* The US Federal Deposit Insurance Corp (FDIC) is considering steps to facilitate takeovers of Signature Bank and Silicon Valley Bank, a source told Reuters.

* US President Joe Biden said the banking crisis has calmed down after the collapse of Silicon Valley Bank and Signature, seeking to reassure investors and depositors. He urged Congress to give bank regulators greater power.

* European Central Bank supervisors, in an unscheduled meeting, saw no contagion to euro zone banks from the market turmoil that has engulfed Credit Suisse and some US lenders, a source said.

* The ECB’s Thursday rate hike signalled strong confidence in the solidity of European banks, said French ECB policymaker Francois Villeroy de Galhau.

* Financial authorities in Germany, Japan, Singapore, Australia, New Zealand and South Africa said their economies and financial systems were stable.

MARKETS

* European and US shares fell on Friday as investors remained worried about a potentially broad banking crisis. The dollar slipped and Treasury yields fell.

* Banking worries sent US markets on a dizzying ride this week.

* As worries over banks swirl, investors are seeking protection against a market crash