Credit Suisse will borrow about 50 billion francs from the Swiss National Bank
Credit Suisse announced that it will borrow about 50 billion Swiss francs (approximately $54 billion) from the Swiss National Bank (SNB).
In the statement made by the bank, it was reported that Credit Suisse has taken decisive steps to strengthen its liquidity.
In the statement, it was said that Credit Suisse will borrow about 50 billion Swiss francs from the SNB as part of a guaranteed loan facility and a short-term liquidity facility.
THE LIQUIDITY TO BE PROVIDED IS SPECIFIED
The statement said this additional liquidity will support Credit Suisse’s core business and customers, with some debt securities to be repurchased for cash up to approximately 3 billion Swiss francs (approximately $3.2 billion).
Credit Suisse’s decision to borrow comes after the Swiss Financial Markets Regulatory Authority (FINMA) and SNB liquidity action to ease concerns about the bank.
In the joint statement from FINMA and SNB, it was indicated that Credit Suisse, which caused the panic in the markets, would receive liquidity if necessary.
CREDIT SUISSE PANIC IN EUROPE
After the banking crisis that started in the US, there was a panic at Credit Suisse in Europe.
After the Saudi National Bank, the largest partner of Switzerland-based Credit Suisse bank, announced that it would not raise its capital, the bank’s share price fell by more than 20 percent and selling pressure spread throughout the whole market.
Panic selling, which began when Saudi National Bank President Ammar Al Khudairy announced that they would no longer back Credit Suisse, sent risk perception in Europe to a peak. (AA),
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
