Credit Suisse said today it will borrow 50 billion Swiss francs from Switzerland’s central bank to shore up its liquidity following a plunge in its shares and bonds that fueled fears of a global banking crisis.

Analysts said they believe this may not be enough.

HOW IMPORTANT IS CREDIT SUISSE?

The bank is among the world’s largest wealth managers and is one of 30 globally systemically important banks whose collapse could send shockwaves through the entire financial system.

Credit Suisse has a local Swiss bank, as well as wealth management, investment banking and asset management activities. At the end of 2021 it employed over 50,000 workers and managed assets worth 1.6 trillion. Swiss francs. It has over 150 offices in around 50 countries.

WHAT EVENTS LEAD TO THE STOCK’S RECENT Plunge?

A series of scandals over the years, changes at the top of management, multibillion-dollar losses and an unenthusiastic strategy are among the factors that have contributed to the chaotic state the 167-year-old Swiss bank has now found itself in.

The sell-off in Credit Suisse shares began in 2021 and was triggered by losses related to the collapse of investment fund Archegos and Greensill Capital.

In January 2022, Antonio Horta-Osorio stepped down as chairman for violating COVID-19 rules, just eight months after he was hired to turn things around at the troubled bank.

In July, new chief executive and restructuring expert Ulrich Koerner presented a strategic overhaul – but failed to win over investors.

Unsubstantiated rumors that the bank was about to collapse in the fall caused customers to abandon it.

Credit Suisse confirmed last month that clients had withdrawn funds of 110 billion Swiss francs in the fourth quarter as the bank suffered its worst post-financial crisis annual loss of 7.29 billion Swiss francs. Yesterday, Saudi Arabia’s National Bank, the bank’s main backer, told reporters it could not give Credit Suisse any more money because it had regulatory constraints, while saying it considered the bank’s restructuring plan satisfactory.

Its stock has lost 75% over the past year.

WHAT STEPS CAN CREDIT SUISSE TAKE TO REASSURE INVESTORS?

Credit Suisse has said it will borrow up to 50 billion Swiss francs to boost liquidity and investor confidence, but some analysts believe that may not be enough to reassure investors.

Securing the support of strategic investors could be an option to boost market confidence. Among its investors are the Qatar Investment Authority and the Saudi Oyalan Group.

Divestment from various assets is an option, as Credit Suisse owns asset management activities and a stake in SIX Group, the company that runs the Zurich stock exchange.