The Swiss National Bank on Wednesday evening said it would provide additional liquidity to Credit Suisse if necessary. Then early Thursday morning local time, Credit Suisse said it would borrow up to CHF 50B ($54B) from the SNB under a covered loan facility and a short-term liquidity facility.
The central bank and the Swiss Financial Market Supervisory Authority released a statement on Wednesday saying that Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks and that it would intervene if the situation changes.
- Shares of Credit Suisse fell more than 30% at one point during the trading session on Wednesday following reports that the bank’s largest investor, Saudi National Bank, would not provide Credit Suisse with any further financial assistance.
- Saudi National Bank Chairman Ammar Al Khudairy said the bank could not provide the financial support as it would put its stake in Credit Suisse above 10%, which is not allowed.
- Al Khudairy added that the Saudi National Bank is happy with Credit Suisse’s transformation plan.
- Saudi National Bank took a 9.9% stake in Credit Suisse in 2022 as part of the Swiss bank’s $4.2B restructuring capital raise.
- On Tuesday, Credit Suisse announced it had found “material weaknesses” in its financial reporting processes for 2022 and 2021.
- The bank said its full-year 2022 results, where it reported its largest annual loss since 2008, were unaffected.
