The announcement that Credit Suisse would take steps to strengthen its finances by borrowing up to about USD 54 billion from the Swiss central bank on Thursday sent its shares soaring 30%, boosting confidence as concerns about the banking sector spread from the US to Europe.
A day earlier, the shares of Switzerland's second-largest commercial bank fell 30% on the SIX stock exchange after the company's largest shareholder announced it would not invest any more money in the country's lender.
This led to the collapse of several European banks after the fall of a few US banks sparked concerns about the state of the world's banks.
Credit Suisse announced on Thursday that it would exercise an option to borrow up to 50 billion Swiss francs (USD 53.7 billion) from the central bank. Credit Suisse was plagued by issues even before the American bank crises.
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