The sharp decline in the value of the shares of Credit Suisse, Switzerland’s second largest bank, will not lead to a new banking crisis in the European financial market. Currently there is no “contagion risk” for other credit institutions in the region, declaration Pierre Wunsch, Member of the Board of Governors of the European Central Bank (ECB), in an interview with the Belgian newspaper L’Echo.
According to him, the possibility of bankruptcy of the Swiss banking structure Credit Suisse Group AG is is Low. In addition, local financial authorities will do everything possible to prevent such a scenario.
“I don’t see the risk of European banks being infected and a new banking crisis in the region. “I can’t imagine that the Swiss authorities would do nothing if there was a real problem,” Wunsch said.
16 March Credit Suisse (CS) management reportedTo maintain existing contributions to CS, the Swiss National Bank (local central bank) will borrow 50 billion Swiss francs, or approximately $53.7 billion, from its entities.
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.