Swiss central bank supports Credit Suisse where necessary

- Advertisement -spot_imgspot_img
Swiss central bank supports Credit Suisse where necessary

The Swiss central bank promises Credit Suisse financial support if needed. Earlier, Swiss authorities were in talks with the troubled bank about ways to stabilize the situation at the financial group, according to Bloomberg.

The Swiss central bank promises Credit Suisse financial support if needed. Earlier, Swiss authorities were in talks with the troubled bank about ways to stabilize the situation at the financial group, according to Bloomberg. (EPA)

A rescue attempt has also reportedly been suggested in which Credit Suisse would somehow merge with rival UBS, the bank where former ING boss Ralph Hamers is currently CEO. However, the insiders emphasized that it is unclear whether any of the discussed options will actually be implemented. Spokesmen for Credit Suisse, UBS and the Swiss central bank declined to comment, and the country’s finance ministry did not respond to questions from Bloomberg.

Under pressure

Credit Suisse has long been under pressure as customers continue to withdraw money from their accounts over concerns about the bank’s future. On Wednesday, the chairman of Saudi National Bank, the largest shareholder, said he did not want to invest any more in Credit Suisse. That statement caused great unrest in the banking sector and the share of Credit Suisse plummeted more than 24 percent on the stock exchange in Zurich on Wednesday.

Business newspaper Financial Times reported earlier in the day based on sources that Credit Suisse has asked the Swiss central bank to publicly support the financial group. Authorities in other countries are also working on the issue. According to The Wall Street Journal, the European Central Bank (ECB) is already asking other banks about their ties with Credit Suisse. Bloomberg also reported that the US Treasury Department would investigate the risks for banks in the United States.

Dutch banks

Dutch banks have sufficient financial buffers and are therefore ‘resilient to absorb shocks in the markets’. This was announced by the Ministry of Finance in response to the recent unrest on the stock markets, where bank shares were hit hard on Wednesday.

The immediate reason for this unrest is the situation at Credit Suisse, where customers withdraw money from their accounts on a large scale. There are also concerns about the US financial sector, where several smaller banks ran into difficulties last week.

The ministry says it understands the concerns about Credit Suisse. “This is an international, systemically important bank,” said a spokesman. But he also points out that the Swiss bank has ‘specific problems’ that Dutch banks do not have to deal with.


- Advertisement -spot_imgspot_img
Latest news
- Advertisement -spot_img
Related news
- Advertisement -spot_img