The Swiss Nationwide Financial institution (SNB) and the Swiss Monetary Market Supervisory Authority launched a joint assertion on March 15 on the soundness of the Swiss banking system and Credit score Suisse. The issues of “sure banks within the USA” don’t pose a threat for the Swiss monetary system, they wrote.
The assertion was reportedly produced on the request of Credit score Suisse. The regulators mentioned Credit score Suisse meets all capital and liquidity necessities, however “if essential, the SNB will present CS [Credit Suisse] with liquidity.” Nevertheless, Credit score Suisse nonetheless “meets the capital and liquidity necessities imposed on systemically necessary banks.” The assertion acknowledges that Credit score Suisse has been “affected by market reactions in latest days.”
On March 14, Credit score Suisse Group CEO Ulrich Körner confirmed that the financial institution is conservatively positioned towards rate of interest dangers. That day, the financial institution admitted “materials weak spot in our inside management over monetary reporting” after its 2022 efficiency was the worst because the 2008 world monetary disaster.
We fulfill and principally overshoot all regulatory necessities. Our capital, our liquidity foundation could be very robust”. Watch the total interview: https://t.co/hdfAD18JRZ pic.twitter.com/QD3wGZq2yK
— Credit score Suisse (@CreditSuisse) March 15, 2023
The SBN assertion comes as Credit score Suisse shares fell precipitously in the beginning of buying and selling on March 15, shedding as much as 30%, and had been quickly halted throughout a heavy sell-off. Buying and selling was halted for a number of different European banks on the identical time.
Saudi Nationwide Financial institution Chair Ammar Al Khudairy mentioned on March 15 that the Saudi central financial institution — the biggest Credit score Suisse shareholder, with 9.8% of its inventory — would “completely not” present help for Credit score Suisse.
European Central Financial institution officers have contacted banks they supervise to ask about their Credit score Suisse publicity, and the French finance minister will name his Swiss colleague to debate the developments at Credit score Suisse. A U.S. Treasury official advised the information service that it was monitoring the financial institution’s state of affairs.
