News of the Swiss National Bank’s $54 billion liquidity facility to Credit Suisse
In the statement made by Credit Suisse, it was reported that the bank took decisive steps to strengthen its liquidity.
In the statement, Credit Suisse received a loan from the Swiss National Bank as part of a secured loan facility and short-term liquidity facility. (SNB) It was reported that it will borrow close to 50 billion Swiss francs.
It was stated in the statement that this additional liquidity will support Credit Suisse’s core business and customers, and that some debt securities will be repurchased in cash up to approximately 3 billion Swiss francs (approximately 3.2 billion dollars).
Credit Suisse’s borrowing decision, Swiss Financial Markets Regulatory Board (FINMA) and the SNB’s liquidity move to allay concerns about the bank.
In the joint statement made by FINMA and SNB, it was stated that Credit Suisse, which caused panic in the markets, would be provided with liquidity if necessary.
Credit Suisse panic in Europe
After the banking crisis that started in the USA, there was a Credit Suisse panic in Europe.
After the Saudi National Bank, the biggest partner of the Swiss-based Credit Suisse bank, announced that they would not increase their capital, the decrease in the stock price of the bank exceeded 20 percent and the selling pressure spread throughout the market.
The panic sales that started when Saudi National Bank President Ammar Al Khudairy announced that they would not support Credit Suisse any more, caused the risk perception in Europe to reach its peak.
30 percent depreciation in Credit Suisse
Credit Suisse seeks assistance from the Swiss National Bank
from EU bank bankruptcy review
