According to a report by the Financial Times, Credit Suisse, whose name is frequently mentioned with the fear of another bankruptcy after the bankruptcy of Silicon Valley Bank, called for a ‘public’ support to the Swiss National Bank.
Commenting on the subject, Octavio Marenzi, founder of the asset management company Opimas, said, “It seems inevitable that the Swiss National Bank will intervene and provide a lifeline, the Swiss National Bank and the Swiss government are fully aware that the failure of Credit Suisse or even any damage to the depositors will damage Switzerland’s reputation as a financial centre.” said.
No help from Saudi National Bank
The Saudi National Bank, Credit Suisse’s largest investor, said it would not be able to provide further financial assistance to the Swiss bank, Reuters reported.
“We can’t provide more support to the bank because if we do, our stake in the bank will rise above 10 and that’s not something we can do because of regulations. It’s a regulatory issue,” Ammar Al Khudairy, chairman of the Saudi National Bank (SNB), told Reuters.
Bought 9.9 percent of Credit Suisse’s shares
However, Ammar Al Khudairy, who gave a positive opinion about Credit Suisse, said that the bank is in a transformation movement and they are satisfied with this transformation. He also suggested that the bank is unlikely to need the extra money.
The Saudi National Bank acquired 9.9 percent of Credit Suisse’s shares last year to finance a major strategic overhaul of Credit Suisse aimed at improving investment banking performance and addressing a range of risk and compliance issues.
Our liquidity is strong
In a speech he made, Credit Suisse CEO Ulrich Koerner stated that there is no problem with the liquidity base of the bank, and said, “We do not have a problem in this regard and we are very strong in this regard.”
“We basically meet and exceed all legal requirements,” Koerner said. He claimed that the bank did not have a problem especially with regard to liquidity.
Meanwhile, Credit Suisse President Axel Lehmann, speaking to CNBC at a panel in Riyadh, Saudi Arabia on Wednesday morning, declined to comment on whether his company would need any government assistance in the future. “We have strong capital ratios, very strong balance sheets. We are all at work. So that’s not the point.” said.
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