ZURICH/FRANKFURT (Reuters) – Switzerland’s central bank said on Wednesday it was ready to provide liquidity to Credit Suisse “if needed”, a first for a global bank since the financial crisis.
Credit Suisse meets the capital and liquidity requirements set for systemically important banks, however, the Swiss central bank added in a joint statement with the country’s financial regulator.
It is a move designed to contain the crisis of confidence surrounding Switzerland’s second-largest bank, which said on Tuesday it had identified “significant weaknesses” in internal controls over financial reporting as it was already trying to rise from a series of scandals.
According to sources familiar with the matter, governments and at least one bank have put pressure on Switzerland to act in this file, the title of Credit Suisse having plunged by more than 30% on the stock market on Wednesday.
Credit Suisse said it “welcomes this statement of support”.
The Swiss central bank and regulator sought to show confidence in the face of the crisis by saying there was “no indication of direct risk of contagion for Swiss institutions with the current turmoil in the US banking market”.
(Report Noele Illien, John Revill and Tom Sims; Jean Terzian)
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