Shares Of Credit Suisse Drop 20 Percent, Swiss Central Bank Ready To Save

JAKARTA - Credit Suisse shares suddenly fell to their lowest record on Rab trading, March 15. This makes Swiss central bank, Swiss National Bank (SNB) will provide liquidity for these troubled investment banks if needed.

Citing Antara, since Tuesday, March 14, Credit Suisse's shares have continued to decline, dropping more than 20 percent on Wednesday, March 15.

Bank shares opened at 2.28 Swiss francs (2.46 US dollars) per share on Wednesday (15/3/2023) morning, before falling to 1.55, and closed at an all-time low of 1.70 francs.

Founded in 1856, Credit Suisse is Switzerland's second-largest bank, and has an important influence on the global capital market.

Since 2021, banks have been plagued by negative news such as investment losses. Credit Suisse's share price continues to fall, and its market value has dropped dramatically.

In early February, Credit Suisse posted a net loss of 7.3 billion Swiss francs for 2022, while in 2021 its net loss was 1.7 billion Swiss francs.

According to the 2022 bank annual report released on Tuesday (14/3/2023), there is a "material weakness" in internal control over financial reporting.

Meanwhile, the Saudi National Bank, the main shareholder of Credit Suisse, said on Wednesday (15/3/2023) that it would not increase its shares in the bank.

These two events further hit Credit Suisse's share price, and the fall of Silicon Valley Bank (SVB) in the United States has seen European bank share prices generally plummet.

Then on Wednesday (15/3/2023), the Swiss central bank and the Swiss Financial Market Supervisory Authority FINMA issued a statement about market uncertainty.

They say that the stock exchange value of Credit Suisse, and the securities value of its debt, have been greatly influenced by market reactions in recent days.

However, the two agencies say that certain bank problems in the US pose no direct risk to the Swiss financial market.

"Credit Suisse meets the capital and liquidity requirements imposed on critical banks systemically. If necessary, SNB will provide liquidity to CS," the statement said.