Swiss central bank promises to provide liquidity to Credit Suisse

The Swiss National Bank (SNB) expressed its readiness to help Credit Suisse, whose shares fell 24.2%. This was announced on Wednesday, March 15, in a message from the financial regulator.

It is noted that Credit Suisse fully complies with the capital requirements that apply to systemically important banks.

“If necessary, the SNB will provide liquidity to CS,” the statement said.

The stock price of Credit Suisse and the value of its debt securities fell due to the market reaction to the bankruptcy of the American Silicon Valley Bank.

Credit Suisse is the second largest Swiss bank and one of the oldest in Europe.

The bank’s shares plunged nearly 24.2% on Wednesday, March 15, falling below the two Swiss franc mark for the first time. According to the Swiss exchange SIX Swiss Exchange, at the bottom point, the value of securities was 1.7 Swiss francs per share. In this regard, there was a decrease in the leading index of European banks Euro Stoxx Banks by 7%.

The day before, American analyst and investor Robert Kiyosaki, who predicted the collapse of Lehman Brothers in 2008, said that he expects Credit Suisse to go bankrupt.

On March 11, it became known about the bankruptcy of Silicon Valley Bank in the USA. The organization went bankrupt in less than two days. After the bank made an unsuccessful operation with securities, depositors began to withdraw funds sharply from their accounts.

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