The SNB and FINMA also said that “there are no indications of a direct contagion risk for Swiss institutions due to the current turmoil in the US banking market.”
Swiss financial regulator FINMA and the country’s central bank said Wednesday that the Swiss National Bank would provide liquidity to Credit Suisse “if necessary.”
Both institutions stated in a joint statement that Credit Suisse “meets the capital and liquidity requirements imposed on systemically important banks.”
The comments come after the bank’s shares plunged more than 30% on Wednesday and after months of turmoil. Governments and at least one bank were pressuring Switzerland to act, people familiar with the matter said.
The SNB and FINMA also said that “There are no indications of a direct contagion risk for Swiss institutions due to the current turmoil in the US banking market.”
Credit Suisse captured the market’s attention on Wednesday after the failure of Silicon Valley Bank last weekwhich renewed concerns about a banking crisis.
Switzerland is under pressure from at least one major government to intervene quickly in Credit Suisseafter the Swiss bank sent European bank shares tumbling.
Source: Ambito
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