Credit Suisse, the second largest bank in Switzerland, after the collapse of the American Silicon Valley Bank, Signature Bank and Silvergate Capital, was in a difficult position: its shares on the Swiss Stock Exchange (SIX) on Wednesday, March 15, updated an all-time low. Quotes collapsed by 30.8% to 1.55 Swiss francs, which was the strongest drop in one day. As a result of trading on March 15, the fall was 24.2%, to 1.7 Swiss francs.
In addition to the situation with American banks, the fall in quotations was influenced by the refusal of the largest shareholder of Credit Suisse, Saudi National Bank, to buy back more of the bank’s shares due to regulatory requirements, writes RBC. “We can’t, because otherwise we will exceed the threshold of 10%,” said Ammar Al-Khudayri, Chairman of the Board of Directors of Saudi National Bank.
The Swiss central bank has already said it will provide Credit Suisse with liquidity if needed. Regulators believe that despite the “concerns” around Credit Suisse, the bank “meets the capital and liquidity requirements for systemically important banks”, so if necessary, it will be provided with additional support. “There were no signs of direct risk to Swiss institutions due to turmoil in the US banking market,” FINMA and the Central Bank said.
After a record drop in Credit Suisse shares, at least one foreign government and one major bank put pressure on Swiss regulators to provide liquidity, Reuters sources say.
Source: Rosbalt
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