Credit Suisse, the international bank on the brink of bankruptcy, said it will take a loan of up to 50 billion Swiss francs (about $53.9 billion) from its country’s central bank. to “give strength” to the holding company and prevent the shares from continuing to collapse due to the crisis of confidence.
On Wednesday, March 15, Credit Suisse shares fell nearly 30 percent, dragging down the rest of the global banks in the United States and Europe.
The fall of Credit Suisse is added to that generated by the other banking collapse last weekend, that of the Silicon Valley Bank (SVB) of the United States.
Like those banks, banks in Europe have also seen their shares fall, such as BNP-Paribas, Santander, the German Deutsche Bank and Société Générale.
In an official statement, the CS said that The credit seeks to provide it with liquidity to strengthen the “main businesses” while what it calls “necessary measures” are taken.
Credit Suisse is trending this Thursday, March 16, because it also announced a series of debt repurchase operations for about 3 billion Swiss francs.
The entity’s CEO, Ulrich Koerner, said that the measures are part of a “key movement” to strengthen the institution to achieve a “strategic transformation” that will allow it to “give more value” to “customers and other interested institutions.
The fall of Credit Suisse, until a few days ago one of the 30 largest banks in the world, began after statements by the president of the Saudi National Bank, the largest shareholder of that entitywho ruled out contributing more money to the Swiss holding company, especially for regulatory reasons.
Is it safe to have savings at Credit Suisse?
The bank’s situation has been complex since the start of the covid pandemic.
By the end of 2022, the bank disclosed that it was seeing “significantly higher cash deposit withdrawals,” higher “deposit non-renewals” and “net asset outflows.”
IndeedCredit Suisse recorded saver withdrawals for more than 110.00 million Swiss francs in the last quarter of 2022.
These withdrawals have stabilized at lower levels, but “have not yet been reversed,” the company said in an earnings report this week.
Credit Suisse also said in the report that while “decisive steps” have been taken to address the problems, by 2023 it expects “substantial” financial losses.
Founded in 1856, the bank has a long and distinguished history of providing financial services to individuals and businesses around the world.
Its main markets are in Europe, where it is an important player in countries like Switzerland (obviously because it plays at home), the UK and Germany. He has also established a strong presence in Asia, with operations in Singapore, Hong Kong and Japan. And in America, where Credit Suisse has a significant presence in the United States, Brazil and Canada.
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