Shares of the second largest Swiss bank Credit Suisse when trading on the Swiss Stock Exchange on March 15 fell to an all-time low, informed Reuters.
During trading, Credit Suisse shares collapsed up 30.8% and was trading around 1.5 Swiss francs ($1.62). According to trading results, bank quotes fell around 24% (1.7 Swiss francs or 1.83 dollars) compared to the close of trading on March 14.
Record drop in Credit Suisse shares arrived after the main shareholder, the National Bank of Saudi Arabia, refused to support the Swiss bank with additional investments so as not to violate regulatory requirements.
Credit Suisse has contacted Swiss banking regulators for help and asked them to release an “encouraging financial statement” for the bank. claim sources The Financial Times. According to the newspaper, the European Central Bank has asked credit institutions in the EU to report their risks to Credit Suisse.
A record drop in Swiss bank quotes led to a 7% drop in the European banking index. In turn, writing Kommersant, Britain’s FTSE 100 stock index fell nearly 3.8%, the biggest drop in that index since the start of the coronavirus pandemic. The pan-European Stoxx 600 fell 2.9%, the German DAX 3.3% and the French CAC 40 3.6%.
Credit Suisse shares began to fall on March 14 after the bank released its 2022 report. writing Reuters. The document, in particular, says Credit Suisse identified “significant weaknesses” in financial reporting controls and was unable to stop client leaks. Thus, reports showed that in the last three months of 2022, clients withdrew more than 110 billion Swiss francs ($120 billion) from Credit Suisse.
According to the agency, the fall in Credit Suisse’s quotations against a backdrop of bankruptcy In the United States, the Silicon Valley bank has again raised concerns among investors about the stability of the global banking system.