What could be safer than a Swiss bank? This article takes a deep dive into what Swiss authorities are doing to restore confidence in the country’s banking system. As discussed in a previous article, the Public Liquidity Backstop (PLB) is a measure implemented by the Swiss government to insulate the country’s banking system from a run on its systemically-important banks. Designed prior to the involuntary merger between Credit Suisse and UBS, the PLB will, at long last, go into effect in 2025. Yet, the measure could have unintended consequences that need to be fully considered. So how did Credit Suisse (CS) collapse in the first place?
