- Credit Suisse will receive liquidity if needed, a Swiss regulator and the country’s central bank said late Wednesday.
- Credit Suisse “meets the capital and liquidity requirements imposed on systemically important banks,” the authorities said.
- Credit Suisse shares crashed on Wednesday after its largest shareholder said no more financial backing will be granted.
Credit Suisse will be issued liquidity if the lender needs it, a Swiss regulator and the country’s central bank said late Wednesday, offering some measure of reassurance during market turmoil surrounding the company.
Credit Suisse meets the country’s “strict” capital and liquidity requirements imposed on systemically important banks, the Swiss Financial Market Supervisory Authority, or FINMA, and the Swiss National Bank said in a joint statement.
“If necessary, the SNB will provide CS with liquidity,” the entities said.
Credit Suisse’s shares crashed Wednesday after one of the bank’s biggest shareholders said it would not lend any further financial support.
“The answer is absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory,” Saudi National Bank Chairman Ammar Al Khudairy said in a Bloomberg interview, responding to whether it would provide more funding for Credit Suisse.
Credit Suisse’s troubles were at the center of a market sell-off in the US and Europe on Wednesday. The bank published its annual report on Tuesday after a delay because the Securities and Exchange Commission questioned some changes it had made related to cash flow statements from three years ago.
Credit Suisse in its annual report had identified “material weaknesses” in its financial reporting.
The regulator and the SNB also asserted the “problems of certain banks in the USA” do not pose a direct risk of contagion for the Swiss financial markets – a nod to last week’s seizure of Silicon Valley Bank by US regulators.