Switzerland's central bank pledged on Wednesday to fund Credit Suisse with liquidity 'if necessary,' a first for a global bank since the financial crisis more than a decade ago.
The Swiss National Bank logo is pictured on its building in Bern, Switzerland June 16, 2022. REUTERS/Arnd Wiegmann
with liquidity "if necessary," a first for a global bank since the financial crisis more than a decade ago. In a joint statement with supervisor FINMA, they announced the radical step, but insisted that Credit Suisse was sound and "meets the capital and liquidity requirements imposed on systemically important banks".
The move to support the bank, with the pledge of central bank money, is designed to stem a crisis of confidence in Switzerland's second-biggest lender.The bank's stock had plunged more than 30% on Wednesday, following months of turmoil. Governments and at least one bank put pressure on Switzerland to act, according to people familiar with the matter.
The SNB and FINMA sought to underpin confidence in the bank, saying that "there are no indications of a direct risk of contagion for Swiss institutions due to the current turmoil in the U.S. banking market."
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