HomeEconomyGuarantees from the Swiss central bank help Credit Suisse if necessary

Guarantees from the Swiss central bank help Credit Suisse if necessary

Credit Suisse will have access to liquidity from the Swiss central bank if needed, the institution said in a joint statement with financial regulator FINMA. The guarantee came after the Saudi National Bank, Credit Suisse’s majority shareholder, refused to inject more capital into the institution, leading to significant drops in shares of European banks on the stock exchanges. Credit Suisse bonds fell as much as 30% and the European Banking Index (SX7P) fell as much as 7%.

The Swiss authorities guarantee that the bank “meets the capital and liquidity requirements set for systemically important banks”.

Governments and at least one bank put pressure on Swiss authorities to take measures to calm markets, according to Reuters.

Swiss regulators also emphasize that there is no indication of a direct risk of contagion from what is happening in the United States, with the bankruptcy of SVB and Signature Bank.

Author: cash

Source: DN

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