Credit Suisse said on Thursday it would borrow up to $54 billion from Switzerland's central bank to shore up liquidity and investor confidence, after a slump in its shares had intensified fears about a global banking crisis.

The bank's announcement, which came in the middle of the night in Zurich, prompted a 24% rise in Credit Suisse shares and helped reverse some of the heavy losses on stock markets driven by investor fears over potential bank runs across the world.

Credit Suisse is the first major global bank to be thrown an emergency lifeline since the 2008 financial crisis and its troubles have raised serious doubts over whether central banks will be able to sustain their fight against inflation with aggressive interest rate hikes.

Switzerland's central bank said Credit Suisse had the money it needed but stressed it was ready to step in and help if needed.

The BBC understands that the Bank of England has been in touch with Credit Suisse and Swiss authorities to monitor the situation.

Problems in the banking sector surfaced in the US last week with the shock collapse of Silicon Valley Bank, the country's 16th-largest lender, followed two days later by the failure of New York's Signature Bank.