HE Swiss National Bank defended Credit Suisse, the second asset in the country after the stock market plunged to an all-time low of 24.94%. As requested by the bank itself, the monetary authority, as well as the Swiss Financial Market Supervisory Authority (FINMA), issued a joint statement late this Wednesday, assuring that “the strict capital and liquidity requirements imposed on Swiss financial institutions guarantee the stability of the bank.” In addition, the Central Bank has made a commitment. offer Credit Suisse liquidity “if needed”It is an essential message. give confidence to investors and stop the flight of deposits that customers and business have been struggling with in recent months.
That’s why the two utilities wanted to separate the bank’s situation from that which caused Silicon Valley Bank in the United States to fall recently: “Some banks in the US have problems. They do not represent a direct risk of contamination For Swiss financial markets”. They also stressed that Credit Suisse “complies” with capital and liquidity requirements (higher than small entities) that apply to “systemically important” banks.
“The regulation in Switzerland requires that: all banks have capital and liquidity reserves Meeting or exceeding the minimum requirements of Basel (international regulations) standards. In addition, systemically important banks need to meet increased capital and liquidity requirements. This makes it possible to absorb the negative effects of major crises and upheavals,” they argued.
FINMA has guaranteed in “very close contact” with the bank and have “access to all relevant information” for their control. In this context, the supervisor wanted to verify that Credit Suisse “complies with the highest capital and liquidity requirements” applicable to systemically important banks. Moreover, the central bank insisted that it would provide liquidity to the bank “if needed”. FINMA and SNB are following developments closely and are in close contact with the Federal Ministry of Finance to ensure financial stability.”