The risk of the banking crisis in the United States spreading to European countries has also increased.
There has been an unprecedented decline in the share prices of banks in Switzerland after there were signs that some banks were in trouble. Shares of the same bank fell by 24 per cent in one day on Wednesday due to the news of problems in Credit Suisse Bank of Switzerland.
The Swiss authorities have asked the experts of the Bank of England to solve the problems in their banking system. Officials of the Swiss National Bank and the Swiss Financial Supervision Authority have said that they are trying to calm the panic of the financial crisis that has spread like wildfire.
Officials said they will also provide liquidity to Credit Suisse Bank if needed. Due to the risk seen in Credit Suisse Bank, the share price of other banks and financial institutions also fell and affected the overall stock market.
On Wednesday, the German stock market fell by 3 per cent, the French stock market by 4.5 per cent, and the British stock market by 2 per cent.