Credit Suisse’s decision came a day after the Swiss National Bank said it would back the bank “if needed.”
Credit Suisse Group says it intends to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.
The bank says the move is a “decisive action” to boost its liquidity.
Investor reaction was positive, with shares up in Europe and up more than 6% in US premarket trading.
The decision comes a day after Swiss regulators promised Credit Suisse a liquidity lifeline in an unprecedented move by the central bank.
The SNB and the Swiss Financial Market Supervisory Authority (FINMA) noted in a statement that Credit Suisse stocks and debt securities have been “particularly affected by the market reaction” in the past few days.
SWISS NATIONAL BANK STATES THAT WILL PROVIDE CREDIT SUISSE SUPPORT “IF NECESSARY”
“Against this backdrop, FINMA confirms that Credit Suisse is compliant with the higher capital and liquidity requirements applicable to systemically important banks. In addition, the SNB will provide liquidity to the globally active bank if needed,” the Swiss institutions said.
Shares in the Swiss lender fell as much as 30% on Wednesday.
“Credit Suisse is taking decisive action to proactively strengthen its liquidity, intending to exercise its option to borrow up to CHF 50 billion from the Swiss National Bank (SNB) under a secured facility as well as a short-term liquidity facility. fully backed by high-quality assets,” Credit Suisse said in a statement.
CREDIT SUISSE REDUCES ALMOST 25%, KEY BACKER SAYS NO MORE MONEY
Global markets have been on a roller coaster this week following the collapse of Silicon Valley Bank and Signature Bank.
Credit Suisse reported its biggest annual loss last month since the 2008 global financial crisis.
He also warned that more “substantial” losses would follow this year.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| KS | CREDIT SUISSE GROUP AG | 2.02 | -0.14 | -6.26% |
The bank is the second largest in Switzerland.
CREDIT SUISSE STOCK WAS ALL-RECORD LOW
Credit Suisse has begun a major overhaul of its business, cutting costs and jobs to revive its fortunes, including creating a separate business for its investment bank branded CS First Boston.
Reuters provided this report.
Credit: www.foxbusiness.com /