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Saturday, April 1, 2023

The bankruptcy crisis reaches Europe..the second largest Swiss bank is the first victim


Bank testifies "Credit Suisse"the second largest bank in Switzerland, a significant drop in its share price, in light of fears of a possible collapse "Credit Suisse" Similar to US banks.

Credit Suisse said, in a statement Thursday, that it is taking "Decisive action" To enhance liquidity by using the option available to him to borrow from the Swiss National Bank up to 50 billion Swiss francs ($ 54 billion), according to Reuters.

The announcement came just hours after the Swiss National Bank revealed that the capital and liquidity levels of… "Credit Suisse" Sufficient, with his pledge to provide liquidity if necessary.

Credit Suisse said the central bank’s loan of 50 billion Swiss francs ($53.7 billion) "Will support the core business and clients", adding that the bank will also offer offers to buy back debts of about three billion dollars. The bank’s CEO, Ulrich Korner, said: "These measures show crucial actions to strengthen Credit Suisse as we continue our strategic transformation"according to Agence France-Presse.

Shares in Credit Suisse, which was previously exposed to a series of scandals, fell more than 30 percent, on Wednesday, after the National Bank of Saudi Arabia, its main shareholder, refused to provide more financial aid to the ailing Swiss banking giant.

Saw the market value of a bank "Credit Suisse" It declined sharply this week due to fears of transmission of the collapse of two US banks, in addition to its annual report, which referred to "fundamental weaknesses"

The bank recorded a net loss of 7.3 billion Swiss francs ($7.8 billion) for the fiscal year 2022.

This came after massive withdrawals of funds by its clients, including in the wealth management sector, which is one of the activities that the bank intends to refocus on as part of a major restructuring plan.

Calming fears According to the Qatar News Agency, European stocks rose today, with the rise of the faltering Credit Suisse bank after obtaining financial assistance from the Swiss National Bank (the central bank), which contributed to calming some fears of a global banking crisis.

The agency’s report says that all eyes are on the European Central Bank’s meeting later in the day, in the first major test of how policymakers respond to growing concerns about the performance of the banking sector.

Is the contagion of the collapse of banks transmitted from America to Europe?.. A question posed by the European media and experts, amid anticipation and caution by the markets that we are facing a new global financial crisis..

Copyright © 2023 The Eastern Herald.

Arab Desk
Arab Desk
The Eastern Herald’s Arab Desk validates the stories published under this byline. That includes editorials, news stories, letters to the editor, and multimedia features on


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