The Bank of England has said the UK banking system “remains safe and sound” following the purchase of Swiss bank Credit Suisse by UBS.

In a statement, the Bank of England said: “We welcome the comprehensive set of actions set out by the Swiss authorities today in order to support financial stability.

“We have been engaging closely with international counterparts throughout the preparations for today’s announcements and will continue to support their implementation.

“The UK banking system is well capitalised and funded, and remains safe and sound.”

READ MORE: Stay calm as banks go into meltdown and financial crisis looms

The bank’s statement comes after Credit Suisse was rescued by fellow Swiss bank UBS in a deal backed by the government.

The announcement on Sunday evening came after a weekend of talks between the two banks and the country’s financial regulator. The Swiss National Bank said the deal was the best way to restore the confidence of financial markets.

In a statement, Switzerland’s central bank said: “With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation.”

Alongside the Bank of England, other institutions praised the deal.

The UK Treasury said it welcomed the merger while the Financial Conduct Authority (FCA) said: “The FCA continues to engage closely with UK and international regulatory partners to monitor market developments.”

President Christine Lagard, the President of the European Central Bank, said the Swiss authorities “are instrumental for restoring orderly market conditions and ensuring financial stability”.

She added: “The euro area banking sector is resilient, with strong capital and liquidity positions.”

Credit Suisse originally suffered losses after the failure of two smaller US banks in the past two weeks.

*This story has not been edited by The Infallible staff and is auto-generated from a syndicated feed.