Credit Suisse is strong, and we will provide liquidity if needed

An application for state aid has been submitted before Swiss credit, according to the Financial Times, after the collapse. For its part, the Swiss Central Bank said it would provide liquidity to the bank “if necessary”.

“Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks. If necessary, the Swiss National Bank will provide liquidity,” the central bank and the Swiss supervisory authority (FINMA) said in a joint statement.

They also report that “the Swiss financial market watchdog FINMA and the Swiss National Bank (SNB) confirm that the problems of some banks in the United States They do not pose an immediate contagion risk to the Swiss financial markets. The strict capital and liquidity requirements applied to Swiss financial institutions ensure their stability. Credit Suisse meets the capital and liquidity requirements of systemically important banks. If necessary, the SNB will provide liquidity to CS.”

FINMA and the Swiss National Bank also noted in this joint statement that there is no indication of immediate contagion risk for Swiss institutions due to the current turmoil in the US banking market.

In the same statement, it was emphasized that “Regulation in Switzerland requires all banks to maintain capital and liquidity that meet or exceed the minimum requirements of Basel standards. In addition, banks of systemic importance must meet higher capital and liquidity requirements. This It allows the negative effects of major crises to be absorbed. The stock market value of Credit Suisse and the value of its securities have been particularly affected by market reactions in recent days. FINMA is in very close contact with the Bank and has access to all information related to the Supervision Act. In this context, FINMA confirms that Credit Suisse Meets 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 statement (FINMA) and the Swiss National Bank (SNB) are following developments closely and are in close contact with the Federal Ministry of Finance to ensure financial stability.”

Ad in detail:

The Swiss National Bank and Swiss financial market supervisor FINMA claim that the problems of some US banks do not pose an immediate contagion risk for Swiss financial markets. The strict capital and liquidity requirements applied to Swiss financial institutions ensure their stability.

Credit Suisse meets the capital and liquidity requirements of systemically important banks. If necessary, the SNB will provide liquidity to the CS.

In this joint statement, the Swiss National Bank (SNB) and FINMA indicated that there is no indication of an immediate contagion risk for Swiss institutions due to the current turmoil in the US banking market.

Regulation in Switzerland requires all banks to maintain capital and liquidity reserves that meet or exceed the minimum requirements of Basel standards. In addition, systemically important banks must meet higher capital and liquidity requirements. This allows the negative effects of major crises to be absorbed.

The stock market value of Credit Suisse and the value of its securities have been particularly affected by market reactions in recent days.

FINMA is in very close contact with the Bank and has access to all information related to the Supervision Act. In this context, FINMA confirms that Credit Suisse meets 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.

FINMA and the Swiss National Bank are following developments closely and are in close contact with the Federal Ministry of Finance to ensure financial stability.”

Help texts

Bank management and Swiss government officials are considering a range of options, Bloomberg reports, citing people familiar with the matter. The possibility of breaking up the bank and exploring a merger with the UBS group has also been raised.

Although this scenario has been under consideration for some time now, after Credit Suisse shares fell to a new record high today and the cost of insuring bank debt has risen to crisis levels, it seems to be taking on a more urgent character. writes newmoney.gr.

asking for help

Earlier today, the bank, v. Financial Times, seeking a reassuring statement from the Swiss National Bank, but also from Finma, the Swiss regulator. Previously, it had seen its stock drop as much as 30%. Later in the day the stock recovered, although compared to yesterday it was -16% at CHF 1.87.

So far, with less than three months to go, the stock has lost a third of its value at the beginning of 2023, and in the past 12 months it has lost 70% of its value.

Meanwhile, Switzerland’s 10-year note rose 22 basis points, to 0.97%. Similar increases were recorded in other European bonds such as French, German, Spanish and Portuguese.

The request came a few hours later from her boss Swiss credit AG group Axel Lehmann he said that State aid ‘not an issue’ The Swiss bank is trying to boost confidence among clients, investors and regulators after a series of missteps.

Because it transfers a file bloombergSpeaking at a financial sector conference in Saudi Arabia on Wednesday, Lehman said it would be inaccurate to compare Credit Suisse’s current problems. With the recent collapse of the Silicon Valley bank, especially because banks are regulated differently. “We have strong capital ratios and a strong balance sheet,” Lehman said. “We’ve already taken the medicine.” he said, referring to the broad restructuring program announced in October.

Lehmann’s comments echo those of Chief Executive Officer Ulrich Korner on Tuesday, who pledged patience with the lender as he embarks on a three-year plan to return the bank to profitability. The operation now risks being embroiled in a broader financial sector sell-off after the collapse of several regional lenders in the US, This prompted the authorities there to introduce a new bond large enough to protect the deposits of the entire country.

At the same time, the European Central Bank is in a hurry to prepare Requiring banks in Europe to inform them of any requests that they may have at Credit Suisse.

For her part, French Prime Minister Elisabeth Born indicated that Finance Minister Bruno Le Maire would hold talks with his Swiss counterpart, adding that “the situation with Credit Suisse is a matter for the Swiss authorities.”

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