The actions of Credit Suisse they plunged, causing nervousness in the sector once the fall reached more than 30% to its record low (below two Swiss francs, about $2.17) for the second day in a row. This situation is added to the banking collapse that is registered in the United States, after the closure of Silicon Valley Bank.
According to the markets, the actions of Credit Suisse during the day registered downward fluctuations, to close with a fall of 13.94%. This, as a result of doubts about the preparation of their financial reports and after the president of Saudi National BankAmmar Al Khudairi, said he would not support the Swiss bank, of which he is the main shareholder, if it required liquidity.
This situation aggravated fear in the markets after the bankruptcy of two banks in the United States over the weekend, affecting the banking sector above all but sinking stock market indices such as the Dow Jones on its way.
Why did Credit Susse shares drop?
Shares of Swiss bank Credit Suisse fell sharply
Due to this situation, Credit Suisse announced that it will take a loan of up to 53.7 billion dollars from the Swiss central bank to “strengthen itself”. He also announced measures to buy back debt.
Credit Suisse lost 2,128.3 million Swiss francs ($2,277.2 million) in market value on the Zurich Stock Exchange on Wednesday.
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As we have mentioned in other informative notes of The Truth Newsthe Saudi National Bank (SNB), which owns 9.88% of Credit Suisse.
“We can’t because we would exceed 10 percent. It’s a regulatory issue,” SNB Chairman Ammar Al Khudairy said.
Chief Executive Ulrich Koerner tried to calm nerves, saying Credit Suisse’s liquidity base remains strong and above regulatory requirements.
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