Shares of Credit Suisse rebounded strongly, rising about 32.59 percent to 2.25 Swiss francs after news that the bank had filed for liquidity support with the Swiss National Bank. The move followed an earlier sharp decline in which the stock slid more than 24 percent by the end of trading, touching a new low around 1.55 Swiss francs. Market participants watched closely as the company pursued measures to shore up its balance sheet amid heightened scrutiny of its liquidity position.
In a coordinated action, the Swiss National Bank and the Swiss Financial Markets Supervisory Authority issued a joint statement indicating readiness to bolster Credit Suisse’s liquidity if needed. The authorities highlighted that the bank would be required to comply with the capital and liquidity rules applicable to institutions deemed systemically important, signaling continued regulatory oversight during the intervention.
The bank subsequently confirmed its intention to borrow up to 50,000 million francs from the SNB to preemptively strengthen its liquidity ahead of European market hours. In parallel, Credit Suisse International launched a program to repurchase certain senior debt securities, with a cap of about 3,000 million francs, as part of the broader liquidity strategy.
deadlock trigger
Saudi National Bank chairman Ammar Al Khudairy had been cited in media coverage as a potential trigger for the stock’s volatility, noting in a televised interview that the Arab lender is not preparing to increase its exposure in Switzerland. He described those market movements as misunderstandings and cautioned against casting blame. In his view, the downturn reflected fear rather than fundamental changes to Credit Suisse’s long-term prospects, and he remained optimistic about the bank’s restructuring plan and the strength of its core franchise.
Al Khudairy described the market reaction as a panic and stressed that the setback did not arise from the underlying viability of Credit Suisse. He emphasized that the broader restructuring strategy had the potential to restore stability and asserted confidence in the bank’s franchise as a whole, even as investors weighed the implications of the latest developments.
Spanish banking, risk free
Several major Spanish lenders, including Santander, BBVA, CaixaBank and Bankinter, stated that their exposure to Credit Suisse is minimal or effectively non-existent. Regional regulators and policymakers have sought clarity on cross-border banking risk as European authorities monitor the situation. The European Central Bank reached out to the banks under its supervision to assess any direct or indirect exposure resulting from the Credit Suisse episode. In Spain, the Bank of Spain indicated that it would take necessary steps to monitor the evolving risk landscape in light of international developments. The decision comes in the wake of concerns sparked by the collapse of high-profile niche lenders in the United States and the broader turmoil in the financial sector, including the failures of certain crypto-related institutions abroad.