Swiss central bank throws financial lifeline to Credit Suisse after shares pummelled
Last edited Wed Mar 15, 2023, 06:58 PM - Edit history (4)
Source: Reuters
March 15 (Reuters) - Swiss regulators pledged a liquidity lifeline to Credit Suisse (CSGN.S) in an unprecedented move by a central bank after the flagship Swiss lender's shares tumbled as much as 30% on Wednesday.
In a joint statement, the Swiss financial regulator FINMA and the nation's central bank sought to ease investor fears around Credit Suisse, saying it "meets the capital and liquidity requirements imposed on systemically important banks." They said the bank could access liquidity from the central bank if needed.
The statement came after a major government and at least one bank put pressure on Switzerland to act, said people familiar with the matter, as the lender became caught up in a crisis of confidence after the collapse of Silicon Valley Bank last week. Credit Suisse said it welcomed the statement of support from the Swiss National Bank and FINMA.
Credit Suisse would be the first major global bank to be given such a lifeline since the 2008 financial crisis - though central banks have extended liquidity more generally to banks during times of market stress including the coronavirus pandemic.
Read more: https://www.reuters.com/markets/cautious-calm-returns-bank-stocks-focus-shifts-regulation-2023-03-15/
Article updated.
Previous articles/headlines -
March 15 (Reuters) - Credit Suisse (CSGN.S) shares hit a record low on Wednesday in a rout of European bank stocks, as investor concerns about sector stresses triggered by Silicon Valley Bank's implosion deepened.
Regulators and financial executives around the world have sought to assuage contagion fears after tech-focused lender SVB and another U.S. bank failed last week, but fears persist.
Credit Suisse shares dropped by as much as 30%, leading a 7% fall in the European banking index (.SX7P), while five-year credit default swaps (CDS) for the flagship Swiss bank hit a new record high, highlighting increasing investor concerns.
Two supervisory sources told Reuters that the European Central Bank (ECB) had contacted banks on its watch to quiz them about their exposures to Credit Suisse. One of sources said, however, that they saw Credit Suisse's problems as specific to that bank, rather than being systemic.
March 15 (Reuters) - European bank stocks slumped on Wednesday, with embattled Credit Suisse (CSGN.S) tumbling as much as 30% to another record low, on renewed investor concerns about stresses within the sector triggered by Silicon Valley Bank's sudden collapse.
Regulators and financial executives around the world have sought to assuage contagion fears after tech-focused lender SVB and another U.S. bank failed last week, but worries persist.
The drop in Credit Suisse shares led a 7% fall in the European banking index (.SX7P), while five-year credit default swaps (CDS) for the flagship Swiss bank hit a new record high, highlighting increasing investor concerns.
Europe's bank index has seen more than 120 billion euros evaporate ($127 billion) in value since March 8. "Markets are wild. We move from the problems of American banks to those of European banks, first of all Credit Suisse," said Carlo Franchini, head of institutional clients at Banca Ifigest in Milan.
March 15 (Reuters) - European bank stocks fell sharply on Wednesday, with embattled Credit Suisse (CSGN.S) tumbling to a new low, on renewed investor concerns about stresses within the sector triggered by Silicon Valley Bank's sudden collapse.
Regulators and financial executives around the world have sought to assuage contagion fears after tech-focused lender SVB and another U.S. bank failed last week, but worries persist.
A more than 20% drop in Credit Suisse shares led a 6% plus fall in the European banking index (.SX7P), while five-year credit default swaps (CDS) for the flagship Swiss bank hit a new record high, highlighting increasing investor concerns.
The Swiss National Bank declined to comment on Switzerland's second-largest bank. "Markets are wild. We move from the problems of American banks to those of European banks, first of all Credit Suisse," said Carlo Franchini, head of institutional clients at Banca Ifigest in Milan.
Original article -
Regulators and financial executives around the world have sought to assuage contagion concerns after tech-focused lender SVB and another U.S. bank failed last week, but worries persist about the health of smaller institutions in particular.
A fresh 18% drop in embattled Swiss lender Credit Suisse led the wider European banking index (.SX7P) lower.
Rapid rises in interest rates have made it harder for some businesses to pay back or service the loans they took from banks, increasing the chances of losses for lenders who are also worried about a recession.
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