The Swiss Central Bank announced on Wednesday that it is ready to provide financial assistance to Credit Suisse in case of need. The announcement comes on the heels of the bank’s massive stock market depreciation.
The bank is at risk of collapse and The Swiss government is already under pressure to intervene. It is not known whether only deposits will be saved or shareholders as well.
Credit Suisse shares fell 30%
Credit Suisse shares It fell 30% on Wednesday on the Zurich Stock Exchangeto a new low, after the National Bank of Saudi Arabia, its main shareholder, said that it would no longer provide financial assistance to the Swiss bank to face its difficulties.
The decline, which followed several very negative days for the bank, was affected by the stock market crisis resulting from the collapse of the Silicon Valley Bank, coinciding with the statements of the head of the Saudi government bank, Ammar Al-Khudairi, announcing that There will be no more capital injections by the Bank.
The European Central Bank contacted the supervised banks
To Reuters, two sources at the European Central Bank provided that The European Central Bank contacted the banks under its supervision to question them about possible exposures to Credit Suisse. But one source said Credit Suisse’s problems are specific to this bank, not systemicthat is, capable of polluting the European and even global banking system.
The prospect of another bankruptcy could lead to the European Central Bank delaying or easing interest rate hikes scheduled for Thursday.
European commissioner ensures banking system is ‘in good shape’
European Commissioner for Financial Stability, Mairead McGuinness, confirmed on Wednesday that European banking system ‘in good shape’ This has in recent years increased its flexibility.
Remarks made after the great Devaluation of the currency on the Credit Suisse stock exchangeTrying to avoid panic and send a signal of stability and calm.
McGuinness also ensured that the European supervisors are watching and monitoring the situation.
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