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Switzerland’s biggest bank, UBS, has agreed to buy its ailing rival Credit Suisse in an emergency rescue deal aimed at stemming financial market panic unleashed by the failure of two American banks earlier this month.

“UBS today announced the takeover of Credit Suisse,” the Swiss National Bank said in a statement Sunday. It said the rescue would “secure financial stability and protect the Swiss economy.”

The Swiss government is reportedly set to announce a deal Sunday that will allow UBS, the largest bank in Switzerland, to buy its beleaguered rival, Credit Suisse, for $2 billion, according to the Financial Times.

Shares of Credit Suisse and UBS led losses on the pan-European Stoxx 600 index on Monday morning, shortly after the latter secured a 3 billion Swiss franc ($3.2 billion) “emergency rescue” of its embattled domestic rival.

Credit Suisse shares collapsed by 60% at around 11:20 a.m. London time (7:20 a.m. ET), while UBS traded 5% lower.

Europe’s banking index was down nearly 1.8% around the same time, with lenders including ING, Societe Generale and Barclays all falling over 2.7%.

Sen. Joe Manchin (D-WV) is among the U.S. delegation making its way to Davos, Switzerland, for the annual World Economic Forum.

The meeting of dozens of heads of state and hundreds of government ministers has the theme "Cooperation in a Fragmented World," stressing working together as reduced economic development affects countries amid the coronavirus pandemic and war in Ukraine.

Switzerland has a serious systemic problem with racism against people of African descent, according to a report presented to the U.N. Human Rights Council on Monday, giving a broad range of examples from police brutality to a children's game.

U.S. government bond yields surged Thursday, after foreign governments and central banks rushed to raise interest rates or otherwise support local currencies pressured by the dollar’s strongest rally in a generation.

U.S. yields were largely stable overnight after the Federal Reserve raised short-term rates by 0.75 percentage point for the third consecutive meeting and said more large rate increases are likely as the central bank seeks to quell inflation. 

The U.S. Federal Reserve has been the most aggressive in using interest rate hikes to cool inflation that is battering both households and businesses this year. This week, central banks from Asia to England followed suit to varying degrees and using different economic tools to tame rising prices that are not isolated to the U.S.

Following are actions taken Thursday, and also earlier this week, by central banks globally: