Credit Suisse plans to borrow up to $54 billion from the Swiss central bank to improve its liquidity after its shares plunged to a new low following bank failures in the United States.
The bank will also access a "short-term liquidity facility" and will buy back about $3 billion in debt.
This move comes as heightened fears of a global financial crisis sent banking shares across Europe and the US suffered big declines.
European Central Bank Vice President Luis de Guindos also highlighted concerns about banks, telling finance ministers Tuesday that some EU lenders could be vulnerable to rising interest rates.
Credit Suisse will borrow up to 50 billion Swiss francs from the Swiss National Bank to quell anxiety over its financial health, which is largely due to issues in the bank over the last few years.
Its shares tumbled 24 percent on the SIX Swiss Exchange to a new low, leading other European banks to sink as well.
The bank stated this move was "decisive action to pre-emptively strengthen liquidity" after its biggest shareholder, Saudi National Bank, refused to put more money into the lender.
This sparked new fears about the health of financial institutions following the recent Silicon Valley Bank and Signature Bank collapses in the US.
Credit Suisse Chairman Axel Lehmann defended the bank, saying: "We already took the medicine" to reduce risks while Swiss financial markets regulator pledged emergency funding would be available if needed.
Credit Suisse is Switzerland's second largest lender and is the first major global bank to be given a lifeline since 2008.
While some sources believe this is a byproduct of Credit Suisse's troubles in recent years, others suggest that investor worries about the health of Western banks in general would have contributed to this move.