“Credit Suisse complies with the capital and liquidity requirements imposed on systemically important banks. If necessary, the SNB will make liquidity available to Credit Suisse,” the SNB and Finma say in a joint press release.
The two banking sector regulators are coming out of a long silence at the end of a day in which Credit Suisse’s market value fell to less than $7 billion and its shares fell to a record low of 1.55 Swiss francs.
A sharp drop triggered by Credit Suisse’s main shareholder, the Saudi National Bank, which indicated it would not put more money in the pot, but mostly for regulatory reasons.
No risk of contagion
The president of the national bank Ammar al-Khudairy could have added that he was very happy with the restructuring program of the second Swiss bank, which he considers very solid, the damage had already been done and investors sold whoever was better.
For the SNB and Finma, “the current turmoil in the US banking market does not suggest that there is a direct contagion risk for Swiss establishments.”
“Market reactions have weighed especially on the stock value and on the price of Credit Suisse’s debt securities in recent days,” underline the two regulators.
“Finma is in very close contact with the bank and has all the relevant information from the point of view of supervisory law,” underlines the joint press release.
“The SNB and Finma are following developments very closely and are also in close contact with the Federal Department of Finance in this context to ensure financial stability,” the press release underlines.
Source: BFM TV
