Credit Suisse is working to shore up its cash by exercising its option to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.
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Credit Suisse Crisis: Credit Suisse Group AG’s long-standing troubles turned into a bigger crisis on Wednesday as its stocks and bonds plunged, leaving Credit Suisse in the lurch. Now credit Suisse Has decided to take a loan of 54 billion dollars (44,68,36,50,00,00) from Swiss Bank. Credit Suisse said on Thursday it was working to shore up its cash by exercising its option to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.
Credit Suisse says shares in major Swiss fell as much as 30% on Wednesday after Swiss regulators promised to deliver cash to Credit Suisse by a deadline, in a significant move by a central bank. Credit Suisse said the borrowing will be made under a covered credit facility and short term cash flow facility, fully collateralized by high quality assets.
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Credit Suisse takes the necessary steps to create a bank that is simpler and more focused on customer needs. Swiss financial regulator FINMA and the country’s central bank on Wednesday sought to ease investor fears of Credit Suisse, saying it meets the capital and cash requirements imposed on systemically important banks and that the bank’s central bank will step in if needed. Can get cash from bank.
Lenders in crisis of confidence
In this case, people said that after the sinking of Silicon Valley Bank last week, the lenders are trapped in a crisis of confidence. Credit Suisse said it welcomed the statement of support from the Swiss National Bank and FINMA. Credit Suisse would be the first major global bank to give such a deadline since the 2008 financial crisis. However, central banks have provided more liquidity to banks during times of market stress, including the coronavirus pandemic.
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Credit Suisse could not provide financial help
The week now sent global bank stocks on a roller-coaster after the SVB and Signature Bank plunges, with investors discounting US President Biden’s assurances and emergency steps to give banks more money. By Wednesday the focus had shifted from the United States to Europe, where bank shares tumbled after Credit Suisse said its largest investor said it could not provide more funding due to regulatory hurdles.
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Credit Suisse faced 7% decline
To allay concerns, FINMA and the Swiss Central Bank said there were no signs of a direct risk of exemption for Swiss institutions from the US banking market turmoil. Earlier, Credit Suisse shares suffered a 7 per cent fall in the European banking index, while the five-year credit default swap (CDS) for the major Swiss bank hit a new record.
