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As a "decisive measure to proactively strengthen its liquidity," Credit Suisse intends to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss Central Bank, the bank's press office announced on March 16. In addition, the bank issued a tender offer to purchase bonds worth $2.5 billion in dollars and €500 million in euros.
In a press release, Credit Suisse stated that the extra liquidity would assist its clients and core business.
According to Bloomberg, Credit Suisse's plan is an effort to halt the trust crisis that is endangering the global financial system. On March 14, shares of one of Switzerland's biggest banks fell by 31% in trading in Zurich, and bonds dropped to levels that indicate a severe financial disaster. The fall of Credit Suisse caused the SX7P banking indicator in Europe to fall by 7%.
Investors' subsequent selling off of their assets caused concerns about the global financial system to increase. Two supervisory sources told Reuters that the European Central Bank has contacted banks to explain information about their risks.
source: bloomberg.com, reuters.com
In a press release, Credit Suisse stated that the extra liquidity would assist its clients and core business.
According to Bloomberg, Credit Suisse's plan is an effort to halt the trust crisis that is endangering the global financial system. On March 14, shares of one of Switzerland's biggest banks fell by 31% in trading in Zurich, and bonds dropped to levels that indicate a severe financial disaster. The fall of Credit Suisse caused the SX7P banking indicator in Europe to fall by 7%.
Investors' subsequent selling off of their assets caused concerns about the global financial system to increase. Two supervisory sources told Reuters that the European Central Bank has contacted banks to explain information about their risks.
source: bloomberg.com, reuters.com