The Swiss National Bank said on Wednesday that it would provide liquidity to Credit Suisse if necessary, but assured that the bank meets the strict liquidity and capital requirements required of all Swiss financial institutions to ensure its stability.
Credit Suisse had its toughest trading day on the stock exchange, losing a quarter of its market value. Shares plummeted to an all-time low in their 167-year history, below 2 Swiss francs.
The bank – hit hard by distrust in its management and in the banking system in general after the failure of three banks in the United States in one week – asked the Swiss National Bank and the Swiss Financial Market Supervisory Authority (FINMA) to make a strong statement of support to calm the markets.
The two institutions issued a joint statement saying that despite the problems in the US financial sector, “there are no indications that point to a risk of contagion for Swiss institutions”.
“Regulations in Switzerland require all banks to maintain capital and liquidity buffers that equal or exceed the minimum requirements of the Basel standards,” which are international measures to quantify bank risks on a comparable basis.
Systemically important banks have to meet even higher standards, “allowing the negative effects of larger crises to be absorbed”, they said.
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