In an unprecedented move, Switzerland’s biggest bank, UBS, has agreed to buy Credit Suisse in an emergency rescue deal aimed at halting the financial market panic triggered by the collapse of two American banks. The deal is set to secure financial stability and protect the Swiss economy, according to a statement by the Swiss National Bank.

UBS will pay 3 billion Swiss francs ($3.25 billion) for Credit Suisse, a price significantly lower than the bank’s market value when markets closed on Friday. As a result, Credit Suisse shareholders will be largely wiped out, receiving only 0.76 Swiss francs in UBS shares for stock that was worth 1.86 Swiss francs on Friday. Additionally, owners of $17 billion worth of “additional tier one” bonds, a riskier class of bank debt, will lose everything.

The emergency takeover comes after Credit Suisse had been losing the trust of investors and customers for years. Last year, it recorded its worst loss since the global financial crisis. However, the situation worsened last week after it acknowledged “material weakness” in its bookkeeping and the collapse of Silicon Valley Bank and Signature Bank sparked fear about weaker institutions. This was further compounded by soaring interest rates that undermined the value of some financial assets, leading to a massive outflow of funds and account holders withdrawing deposits of more than $10 billion per day.

In an effort to prevent the meltdown from spreading through the global financial system, Swiss authorities initiated a search for a private sector solution with limited state support, while also considering Plan B, a full or partial nationalization.