Germany’s financial system is “stable and strong”, the Federal Financial Supervisory Authority (BaFin) assured today after UBS’s hasty purchase of Credit Suisse was met with reservations today by markets.

“BaFin is currently monitoring market developments and taking them into account as part of its supervisory mission. Germany’s financial system remains stable and strong,” the Federal Authority said in a brief statement to AFP.

After intense negotiations over the weekend, UBS yesterday bought rival Credit Suisse at a very low price after the Swiss government provided significant guarantees and the Swiss National Bank a liquidity line.

Due to the takeover this morning, bank shares fell on European stock markets, with investors worried about the destabilization of the banking system.