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Credit Suisse shares surge more than 20% on Swiss National Bank’s loan announcement

WorldEuropeCredit Suisse shares surge more than 20% on Swiss National Bank's loan announcement
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A branch of Swiss banking giant Credit Suisse behind a window under rain in Basel. (Photo by FABRICE COFFRINI / AFP) (Photo by FABRICE COFFRINI / AFP via Getty Images)

Fabrice Coffrini | AFP | Getty Images

credit Suisse Shares soared more than 30% in Thursday’s market after the bank said Borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.

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The stock’s rally cooled slightly in early trading, but shares were still up 21.8% at 10 a.m. London time (6 a.m. ET).

The beleaguered lender announced late on Wednesday that it would exercise its option to borrow from the Swiss central bank under a covered loan facility and a short-term liquidity facility.

Swiss National Bank and the Swiss Financial Market Supervisory Authority said in a statement on Wednesday that Credit Suisse “meets the capital and liquidity requirements imposed on systemically important banks.”

Credit Suisse also offered to buy back approximately 3 billion francs worth of debt related to 10 US dollar-denominated senior debt securities and four euro-denominated senior debt securities.

Credit Suisse CEO Ulrich Körner said in the release Wednesday, “These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our customers and other stakeholders. “

“We thank [Swiss National Bank] And as FINMA, we execute our strategic transformation. My team and I are determined to move faster to provide a simpler and more focused bank that is built around customer needs.”

The stock of Switzerland’s second-largest bank, Credit Suisse, along with several other European banks, started the week lower on fears of contagion in light of contagion. The collapse of Silicon Valley Bank.

The Swiss bank’s losses deepened on Tuesday when it announced in its delayed annual report that “physical weakness“was found in its financial reporting in 2021 and 2022, although it said this does not affect the accuracy of the bank’s financial statements.

credit Suisse Shares have come to an all-time low Wednesday fell for the second day in a row after the Saudi National Bank – a top investor – said it would not pump in more cash because of regulatory restrictions.

The Saudi National Bank picked up a 9.9% stake in Credit Suisse as part of the lender’s $4.2 billion capital raise for a massive strategic overhaul aimed at improving investment banking performance and addressing risk and compliance failures.

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