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Friday, March 31, 2023

ECB questions banks over links to Credit Suisse

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He European Central Bank (ECB) has contacted the banks under your watch to ask them about its exposure to Credit Suissetwo supervisory sources told Reuters.

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One of the sources warned, however, that he viewed Credit Suisse’s problems as bank-specific, rather than systemic.

Credit Suisse was about to lose almost a fifth of its value the wednesday after its largest shareholder said it could not provide more supportprompting the chief executive of the Swiss bank to offer reassurances about its financial strength.

The Wall Street Journal first reported Wednesday that ECB supervisors were investigating financial links between Credit Suisse and eurozone banks, citing people familiar with the matter.

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He Credit Suisse it collapses again this Wednesday on Wall Street and loses 17% in a new day of tension. He swiss bank He ruled out increasing his investment when he saw the difficulties that the company is going through in recent times. Thus, the bank’s shares mark new historical lows and there is a risk of default. The fall, as it happened on Monday, drags down the entire financial sector.

This is how it hits the European banks, which followed the trend of the Swiss bank and collapsed. The worst falls were suffered by Spanish banks Sabadell (-11%), BBVA (-9.2), Bankinter (-6.9%), Santander (-6.9%) and CaixaBank (6.1%).

The main stock markets in the world also reflected an impact in this sense and the main losses were shown by the IBEX (-4%), the French stock market CAC 40 (-3.5%), the Euro Stoxx 50 (-3.3%) and the main German DAX index (-3%).

Financial tensions could persist if the information published this morning is confirmed. The Reuters agency assures, citing a close source, that the European Central Bank would have decided to raise interest rates by 50 basis points, as planned before the financial alerts.

Source: Ambito

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