Credit Suisse, plagued by decades of mismanagement, scandals and mismanagement, has finally succumbed to the emerging global banking crisis. Its incredibly quick takeover by rival UBS, orchestrated by Swiss authorities on Sunday, removed a giant, wobbly domino from the table. Hours later, a group of central banks around the world fueled the movement of US dollars through the global financial system to continue lending to households and businesses and supporting major global economies.

The question investors and nervous clients want answered this week: what’s next? Are other banks on the verge of bankruptcy or being saved? Will regulators be forced to step in with more bailouts?

Some regional banks have been on edge over the past week, with customers keen to withdraw tens of billions of dollars in cash from smaller banks and put it into larger, better capitalized institutions.

To pay their withdrawals to customers, regional banks scrambled to access enough cash. First Republic received a $70 billion loan from JPMorgan Chase a week ago and another $30 billion lifeline last Thursday. That still seems insufficient, as shares of First Republic Bank fell another 33% last Friday.

Many other banks, whose identities will likely remain unknown for some time, have requested emergency loans from the Federal Reserve over the past week. Banks borrowed a record $153 billion from the Fed’s discount window last week, a last resort option for banks to get quick access to cash.

The good news: These loans don’t indicate anything inherently wrong with the global banking system. None of the banks that borrowed from the Fed’s discount window borrowed on secondary credit terms: emergency overnight loans that help struggling banks keep the light on. These loans come with tough restrictions and increased scrutiny from the Federal Reserve.

The fact that the Fed loans were primary credit “indicates that banks in need of emergency support are considered by US banking supervisors to be ‘in good health’ and not at high risk of imminent default. “, said Jill. Moody’s analyst Cetina in a note. to investors on Friday.

The bad news: Banks may be in generally good shape, but all of this borrowing shows just how much pressure the financial system is under right now.

The stress means that banks may be reluctant to lend money, which adds more checks to borrowers’ creditworthiness. That means fewer mortgages and less money going to businesses, which could slow the global economy.

This is why the central banks intervened this Sunday. Their coordinated action, unprecedented in the world since the European debt crisis ten years ago, represents the first indication that the banking crisis could have lasting and harmful effects on the world economy.

— CNN’s Matt Egan and Phil Mattingly contributed to this report.