SNB to Provide Credit Suisse With Liquidity If Necessary

On Wednesday morning, new issues at Credit Suisse added to market anxieties, but by the afternoon, a Swiss regulator announced that the nation’s central bank would offer additional liquidity if required.

Once its greatest sponsor decided it could no longer help, the European bank’s stock deteriorated by more than 20% and hit a record low. The “material deficiencies” in the controls over financial reporting were exposed by Credit Suisse on Tuesday in a report.

Saudi National Bank, the bank’s largest shareholder, limits out additional investments. In the largest one-day selloff ever, shares have fallen 24%, while the euro is falling and bonds are rising. Shares of Credit Suisse are under particular pressure as concerns following the failure of SVB and Signature Bank “are manifesting in a broader selloff for global banks. Regulators in the US are examining banks’ exposure.

Almost $100 billion in outflows in 4Q show that sentiment may weigh despite a 14.1% CET1 ratio and plenty financial liquidity. Despite Monday’s inflows, the bank needs more to maintain confidence in a nervous market.