Swiss central bank pledges support for Credit Suisse

The Swiss central bank has agreed to provide financial support to Credit Suisse, reports CNN. According to media reports, Credit Suisse will receive financial assistance of up to 50 billion Swiss francs (53.7 billion US dollars) from the Swiss National Bank in Switzerland. The move was taken to reassure investors that the reputable bank has the liquidity to stay afloat. The bank called the loan a "critical step to proactively bolster liquidity.

"This additional liquidity would support Credit Suisse's core business and clients as Credit Suisse takes the necessary steps to create a leaner and more client-centric bank," the bank said in a statement released by Credit Suisse.press .

It should be noted that the bank, founded in 1856, was one of the largest financial institutions in the world and was classified as a "global systemically important bank", with only 30 other banks including JP Morgan Chase, Bank of America and Bank of China. In addition, Credit Suisse confirmed that it has repurchased billions of dollars of its debt to manage its debt and interest expense. This includes US dollar bonds worth 2.5 billion US dollars and euro bonds worth 500 million euros.

The decision to underwrite a loan came after Asian stocks fell sharply but recovered from the post-Credit Suisse lows, buoyed by the bank's determination to keep confidence in restore their business operations. A joint statement by the Swiss National Bank (SNB) with the Swiss financial regulator FINMA said Credit Suisse (CS) has met strict capital and liquidity requirements imposed on banks that matter to the broader financial system. "The SNB will provide liquidity to CS if required," the joint statement said.

Meanwhile, Silicon Valley Bank's US bankruptcy last week had investors on edge, and the Swiss bank lost shares earlier in the day. This propelled the stock to an all-time high."The problems of some US banks do not pose an immediate threat to the Swiss financial markets," the Swiss authorities said in a press release. "There is no evidence of an immediate risk of contagion for Swiss institutions due to the current turbulence in the US banking market," the statement continues.