Europe’s largest bank Credit Suisse has announced to seek financial assistance of $ 54 billion to deal with the banking crisis. The bank said it would borrow up to 50 billion Swiss francs, or $54 billion, from the Swiss National Bank.
According to the news agency Reuters, the bank said that this is a decisive action to strengthen the liquidity. Let us tell you that on Wednesday, the shares of the major Swiss bank fell by up to 30%. After which the Swiss regulator had promised a liquidity lifeline to Credit Suisse by the central bank.
Let us tell you, on Wednesday, the shares of Credit Suisse closed with a decline of more than 30 percent. The reason for the fall in the shares was the refusal of the largest shareholder of the bank to invest more to support the bank.
Trading in Credit Suisse shares was halted multiple times by the stock exchange operator on Wednesday. Shares of Credit Suisse fell below 2 Swiss francs for the first time on Wednesday morning.
News agency Reuters reported on March 15 that Switzerland is facing pressure from the government to intervene at Credit Suisse amid the collapse of the Silicon Valley bank and its impact on the stock market.
Credit Suisse’s market value had already taken a heavy blow due to fears over the collapse of two US banks and its annual report citing ‘material weaknesses’ in internal controls, reported news agency AFP.
Last month, Credit Suisse reported its biggest annual loss since the 2008 global financial crisis. Global selling has resumed after Credit Suisse raised concerns again.
