“If you look at how the whole banking sector went down, unfortunately, a lot of people were just looking for excuses,” said the president of Saudi Arabia’s National Bank
Its president called it “unjustified”. Saudi National Bank(National Bank of Saudi Arabia), Credit Suisse’s largest investor, the sharp decline in the Swiss bank’s shares.
“If you look at how the whole banking sector went down, unfortunately, a lot of people were just looking for excuses,” said National Bank of Saudi Arabia President Amar Al Hudayri to the US network CBS on Thursday. “It’s a panic, a bit of a panic… I think it’s totally unwarranted, whether it’s Credit Suisse or the whole market,” commented on the “Capital Connection” show.
His comments come hours after Credit Suisse said it was taking “decisive action” to borrow up to 50 billion Swiss francs ($53.68 billion). Switzerland’s central bank offered to provide liquidity of up to 50 billion Swiss francs. Shares in the Swiss bank fell on Wednesday after the Saudi bank said it could not provide further financial assistance to Credit Suisse. After the announced aid, there is a pre-conference recovery.
Amar Al Hudayri stressed that the recent fallout from Silicon Valley Bank’s collapse is different from the 2008 financial crisis, saying steps taken by US regulators to protect depositors ended fears of further contagion.
“We had a setback last week, but this has nothing to do with what we saw in 2008. This is just an isolated incident, regulators have ruled out any possibility of spillover.”write down.
Message “not changed”
The chairman of the National Bank of Saudi Arabia clarified to CNBC that Credit Suisse has not asked for financial assistance.
“There have been no discussions with Credit Suisse to provide assistance”he said. “I do not know where did the word ‘help’ come from, there has been no discussion since October” he argued.
He reiterated that the bank is not expanding its stake beyond the current 9.9%. “The message hasn’t changed, it’s been the same since October,” he remarked. “Even if we wanted to, there are too many complications from a regulatory point of view and from a compliance point of view,” he said.
This particular bank, founded in 1856, is a pillar of the Swiss financial sector, but is facing problems after the collapse of the British financial company Greensill, the trigger of a series of scandals that have put it in a difficult position. Since March 2021, Crédit Suisse stock has lost 83% of its value.
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