The chairman of the Securities Market Commission (CMVM), Luís Laginha de Sousa, assured this Saturday that there are no direct consequences for Portugal from the Credit Suisse crisis and bank failures in the United States.
That’s what Laginha de Sousa said in an interview with Antena 1 radio and Jornal de Negócios “no cause for concern” however, with the immediate consequences of the bankruptcy of US banks and the crisis at the Swiss bank, warn of the need to remain vigilant, as confidence must be preserved.
“We must be aware that we do not live in a world made up of islands and sometimes, in hindsight, there are second-order phenomena and especially in matters involving elements that are intangible – we have been talking about trust. And from this point of view, the authorities, both at national and European level, must act to contribute to the preservation of this asset.”he claimed.
The former director of Banco de Portugal, who has been chairman of the capital market regulator since November, added that the CMVM is monitoring the situation, adding that the matter should be addressed at the regular meeting of the National Board of Financial Supervisors, which takes place on Monday fair.
“I think it’s important to point out that we’re monitoring these things and at this point, in what has to do with these direct effects of direct exposure, we don’t see any cause for concern at this point.” emphasized the person in charge.
On Thursday, Credit Suisse became the world’s first major bank to receive emergency aid since the 2008 financial crisis.
Regarding the increase in interest rates by the European Central Bank (ECB), Laginha de Sousa said he believes the decision was made “in the light of the best information available” as he sees it as a “healthy evolution” as he sees himself in a model in which access to finance comes at a price.
“In the context of what is the normal functioning of an economy, it is normal that whoever needs financing should pay for it and not have negative interest rates,” he noted, noting, however, that it is important to ensure that there is are ways of supporting “those who cannot cope with its consequences”.
The CMVM chairman also defended the need to make investment in capital “more attractive”, as it is essential to “channel incentives or remove disincentives” so that companies can have “the will to invest”.
“Taxation is one point that is inevitable, but it is not the only one and there are political choices to be made and those who make those choices have to look at a much wider range of balances than those who stand alone in the perspective of capital market capitals,” he concluded.
On Thursday it was announced that Credit Suisse would receive a loan of up to 50 billion Swiss francs (50.7 billion euros) from Switzerland’s central bank to “strengthen” the institution’s accounts.
At the same time, the second largest Swiss bank announced a series of debt buybacks worth about 3 billion Swiss francs (3.04 billion euros).
The help came a day after Credit Suisse went through its darkest trading session and lost a quarter of its value, with shares falling to an all-time low, below two Swiss francs (2.03 euros).
This period of turbulence in the banking sector started earlier, with the collapse of the Silicon Valley Bank (SVB) in the United States, followed by a sharp fall on the stock market on Wednesday by Credit Suisse.
Also on Thursday, the ECB announced a rate hike of 50 basis points despite the turmoil in the banking sector.
The institution justified the decision with a determination to ensure “a timely return of inflation to the medium-term target of 2%”.
Shortly after the last meeting, in early February, the ECB announced its intention to decide on a new increase of 50 basis points.
Source: DN
