Looking at the measures in greater detail, the government's $5.3 billion would give it a 9.3% stake in the bank, with a conversion price set at CHF 18.21 per share.

However, UBS said there is "no intention" on the part of the Swiss government to use its stake to influence decisions made by the bank and that the only conditions attached to the deal involve management compensation and rights to information.

It was also reported that Credit Suisse had raised CHF 10 billion with the help of "a small group of investors." The announcement follows expectations that the Swiss bank could see a net loss of CHF 1.3 billion, despite strong profits and inflows in private banking.

In a statement in response to demands from the country's bank regulator and the Swiss National Bank, Credit Suisse said the new capital would boost its Tier One ratio to 13.7%, beyond both the minimum leverage requirements and the regulator's capital targets.

In a separate announcement, the SNB reported that, through a new entity under its ownership and control, it would take on $60 billion of UBS's illiquid U.S. securities.

"As part of these measures, UBS has agreed to strengthen its capital base and to comply with best practices for compensation schemes and policies as determined in consultation with the Federal Banking Commission," the Swiss central bank said in a statement.

By Todd Wailoo, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Sarah Sussman, This email address is being protected from spam bots, you need Javascript enabled to view it

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