UBS is reportedly in negotiations to acquire Credit Suisse, as Swiss authorities and global regulators attempt to prevent further turmoil in the banking system.
The Swiss government has offered guarantees of up to $6 billion to cover the costs associated with winding down parts of Credit Suisse and potential litigation charges.
Credit Suisse's plan to spin off its investment bank is in doubt due to the possible takeover.
The Bank of England has signaled its support for the deal, and it could become the first combination of two global systemically important banks since the 2008-2009 financial crisis.
Swiss bank UBS Group is currently in talks to acquire its rival Credit Suisse amid concerns about the latter's financial instability.
The Swiss government has reportedly offered guarantees of up to $6 billion to cover the costs associated with winding down parts of Credit Suisse and potential litigation charges.
While some sources report that UBS has offered to pay more than $2 billion for the acquisition, others note that the price has not been confirmed.
The deal could see Credit Suisse's Swiss business spun off.
However, the possible takeover has thrown Credit Suisse's plan to spin off its investment bank into doubt.
The Bank of England has indicated that it would back the proposed takeover of Credit Suisse, while European regulators are concerned about the potential impact on investor confidence.