Credit Suisse borrows over $50B from Swiss National Bank after shares crash by nearly one-third

Credit Suisse bMore than $50 billion was borrowed from the Swiss National Bank, after its shares plummeted by almost 30%

The equivalent of $53.7 trillion was borrowed by the banking powerhouse in a loan described as “The Bank’s Loan”. “decisive action to pre-emptively strengthen its liquidity,” CNN reported.

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Credit Suisse, Switzerland’s second-largest bank, accepted the offer by the central bank within hours. There was concern that the bank might run out of cash after this move. Credit Suisse stock prices were smashed Wednesday by investors.

“This additional liquidity would support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs,” The bank stated this in a statement.

The credit crisis at Credit Suisse erupted shortly after the collapse of the United States. Silicon Valley Bank. Although not directly related, the impact on the stock of the Swiss bank was amplified due to investor fears following the Atlantic banking collapse.

Credit Suisse has had a number of scandals in the past, but Wednesday presented its greatest challenge. The catalyst was a televised interview by Ammar al Khudairy with the Saudi National Bank’s chief shareholder. According to The New York Times. He stated that Credit Suisse would no longer be given any money in the interview.

Global repercussions could be caused by Wednesday’s plunge.

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“[Credit Suisse] is much more globally interconnected, with multiple subsidiaries outside Switzerland including in the US,” Andrew Kenningham, chief Europe economist at Capital Economics, told CNN. “Credit Suisse is not just a Swiss problem but a global one.”

Credit Suisse has an estimated $573 billion of total assets.