Credit Suisse will borrow 50 billion Swiss francs from the Central Bank
Credit Suisse bank, the country’s second largest financial institution and whose shares have fallen to a record low, announced that it would borrow up to 50 billion Swiss francs (regarding 53.89 billion USD) from the Swiss National Bank (SNB).
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| Credit Suisse bank in Lucerne, Switzerland. |
| Photo: AFP/VNA/CVN |
Credit Suisse is taking a decisive step to strengthen its liquidity preemptively by exercising an option to borrow from the SNB up to 50 billion Swiss francs under a covered loan facility as well as a short-term liquidity fully backed by high-quality assets, according to a press release released Thursday, March 16.
“These steps demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders. We thank the SNB and FINMA (Swiss Financial Market Supervisory Authority) for their support in implementing œour strategic transformation“said Ulrich Koerner, Managing Director of Credit Suisse.
The loan announcement came as shares of Credit Suisse rose more than 30% at the market open on Thursday (March 16). Credit Suisse also announced offers from Credit Suisse International to buy up to 3 billion Swiss francs of OpCo senior debt securities for cash. This additional liquidity will help support Credit Suisse’s core business and clients, the statement said Founded in 1856, Credit Suisse wields significant influence in the global capital market.
Since 2021, the bank has been plagued by negative news, such as investment losses.
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