Credit Suisse on Thursday announced steps to boost liquidity by securing up to $54 billion from the Swiss National Bank. The decision was prompted by growing concerns about a deposit crisis in the banking sector after the bank’s share price plummeted by 30%. Regulators and financial leaders temporarily stabilized markets after the Silicon Valley Bank (SVB) collapse last week, but new concerns about Credit Suisse have reignited fears.
and statementCredit Suisse said the additional liquidity is “a core We support our business and our customers,” he said.
Credit Suisse said it has bought back a large amount of debt to better manage its debt and expenses, in addition to a loan from the Swiss National Bank.
Once a major player on Wall Street, Credit Suisse has experienced compliance and other failures that have damaged its reputation with customers and investors. The bank in October launched a “drastic” plan to overhaul its operations, including cutting 9,000 full-time jobs, spinning off its investment bank and focusing on wealth management. CNN Analysts report predicting lenders may need additional funding to absorb potential losses in 2023.
Despite the market turmoil caused by the collapses of SVB and Signature Bank in the US, Credit Suisse CEO Ulrich Krner reported that the bank experienced “significant inflows” on Monday.
