UBS Group AG and Credit Suisse Group AG are opposed to a forced combination, even as scenario planning for a government-orchestrated tie-up continues, according to people with knowledge of the matter.
UBS would prefer to focus on its own wealth-centric standalone strategy and is reluctant to take on risks related to Credit Suisse, the people said, asking not to be identified as the deliberations are private.
Its smaller rival is seeking time to see through its turnaround after winning a liquidity backstop from the central bank, they said.
Credit Suisse arrested a collapse in investor confidence on Thursday after winning a 50 billion franc ($54 billion) credit line from the Swiss National Bank. That came after the Swiss lender had appealed to authorities for a public show of support following an unprecedented slump in the shares.
With investors jittery after the collapse of Silicon Valley Bank, comments by Credit Suisse's largest shareholder that it wasn't willing to invest more in the bank were enough to provoke a deep selloff on Wednesday.
Both UBS and Credit Suisse see a takeover as a potential measure of last resort given the significant hurdles and overlap from such a transaction, the people said.
The government and the lenders are running through a whole range of scenarios, and it remains to be seen which additional steps will be taken beyond the liquidity backstop.
UBS and Credit Suisse declined to comment. The Swiss government didn't immediately respond to emailed request for comment.
JPMorgan Chase & Co. analysts led by Kian Abouhossein are among those saying the bank's troubles are most likely to end in its takeover, probably by UBS.
A tie-up with its larger rival was also one option discussed in talks between Credit Suisse and Swiss authorities recently, people with knowledge of the matter said earlier this week.
