Affected by the banking crisis, Credit Suisse receives a loan of $54 billion from the Swiss National Bank.
Credit Suisse, whose shares fell more than 30 percent on Wednesday, March 15, announced that it will borrow 50 billion francs ($54 billion) from the Swiss National Bank.
Steps Taken to Stabilize the Bank Again
These moves, unprecedented at a major Swiss credit institution since the financial crisis in 2008, are crucial to bolstering Credit Suisse’s liquidity. Shares of the bank fell as much as 31 percent on Wednesday, March 15. Doubts against the bank after this development, combined with global sales in banking stocks, put the bonds in deep financial trouble.
After this crisis, the government, the central bank and financial regulator Finma began to look for ways to re-stabilize the bank.
Chief Executive Officer Ulrich Koerner said: “These measures demonstrate that we are taking decisive steps to strengthen Credit Suisse as we continue our strategic transformation. “My team and I are committed to moving quickly to deliver a simpler and more focused bank built around customer needs.”
The second largest credit institution in Switzerland, whose roots date back to 1856, has faced many problems over the past few years. The company’s loss of 7.3 billion francs last year swept away the profits of the previous ten years. The bank’s strategy changes in recent years have so far failed to win over investors or stop customer exits.
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