Moreover, the Swiss National bank was ready to provide financial support to help Credit Suisse strengthen its liquidity. Earlier today, there are ongoing talks that the bank would borrow up to $53.7 billion (50 billion Swiss Francs). Meanwhile, the chairman of the Saudi National bank said there have been no discussions with Credit Suisse about the need for assistance and the recent decline was a bit of panic.

In reaction to the latest headlines, Credit Suisse shares jumped, leading other European bank stocks to rally as investor’s concerns eased.

It is important to note that Credit Suisse is one of the largest banks in Switzerland and is also a significant player in the global financial industry, with operations in over 50 countries worldwide. The bank is known for its expertise in wealth management, particularly for high-net-worth clients.

In recent years, Credit Suisse has faced some challenges, including a high-profile scandal involving its dealings with the hedge fund Archegos Capital Management, which resulted in significant losses for the bank. However, Credit Suisse remains a major player in the global financial industry and continues to provide a wide range of financial services to its clients.

Recently, Credit Suisse said in its annual report that it had found “the group’s internal control over financial reporting was not effective” because it failed to adequately identify potential risks to financial statements. The bank is working on a remediation plan to improve its control tools.

In addition, Credit Suisse CEO said that bank outflows have stabilized but not yet reversed.
During the fourth quarter of last year, many investors decided to withdraw their funds which led the bank to fall below some liquidity buffers.

Finally, global markets are expected to remain volatile in the near term as investors remain cautious about potential bank failures in the coming months.

In the chart below, we can see the sharp decline in Credit Suisse shares.