The Federal Reserve and a quintet of global central banks on Sunday announced a coordinated effort to ease a fast-growing banking crisis, in the hours after UBS, -5.50% announced a historic, emergency merger with troubled Credit Suisse CS, -6.94%. The central bank, including the Bank of Japan, Bank of Canada, Swiss National Bank and the European Central Bank, said it would increase the cadence of of seven-day maturity to daily from weekly operations. Such measures are invoked during periods of market stress to ease access to dollars by international trading partners. Global debt is often denominated in U.S. dollars DXY, +0.13% and the currency can strengthen amid a rush for greenback. The last time the central banks enacted such measures was at the start of the pandemic in 2020. The measures come after UBS said it would takeover Credit Suisse for 3 billion francs ($3.25 billion), or 0.76 francs per share, in an all-stock deal, the bank announced Sunday. The Wall Street Journal wrote that the deal between the Swiss finance giants is the first such combination of systemically important global banks since the 2008 financial crisis when institutions across the banking landscape were carved up and matched with rivals, often at the behest of regulators.
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