Credit Suisse in Crisis, Stock Rises on Central Bank Support Policy

The stock price of Credit Suisse (CS), a global investment bank (IB) from Switzerland caught in crisis rumors, rose in early trading on the 16th (local time). It appears that the Swiss National Bank's (SNB) decision to provide liquidity support to CS to prevent the US Silicon Valley Bank (SVB) bankruptcy from affecting its domestic financial market helped ease investors' anxiety.

As of 9:40 a.m. on the 16th (local time) at the Zurich Stock Exchange in Switzerland, CS shares were trading at 2.11 Swiss francs, up 24.57% from the previous day.

The previous day, CS shares had at one point plunged more than 30% from the previous day to 1.56 Swiss francs. This was interpreted as a result of market anxiety triggered by the SVB bankruptcy last week amid CS’s ongoing capital outflow issues due to financial soundness problems since last year.

As concerns arose that CS might not overcome the crisis amid forecasts of increased volatility in the global financial market for the time being, Swiss authorities quickly moved to contain the situation.

The SNB, in a joint statement with the Swiss Financial Market Supervisory Authority (FINMA) the previous day, stated that CS meets capital and liquidity requirements and that they will strive to ensure financial system stability by providing liquidity to the bank if necessary.

Shortly after, CS announced that it would strengthen liquidity by borrowing up to 50 billion Swiss francs (approximately 70.3 trillion Korean won) from the SNB.

This content was produced with the assistance of AI translation services.