(AOF) – Credit Suisse shares jumped 30.82% to 2.22 Swiss francs after receiving support from the Swiss authorities and the announcement by the Swiss bank of a loan of up to 50 billion Swiss francs ( 50.6 billion euros) with the Swiss National Bank. “This additional liquidity would support Credit Suisse’s core businesses and its clients, as Credit Suisse takes the necessary steps to create a simpler, more focused bank that is focused on client needs,” she explained.
Yesterday, Credit Suisse fell 24% as Saudi National Bank, its largest shareholder with 9.88% of the capital, does not plan to commit more money to support it, according to an interview with the president of the bank. Saudi to Bloomberg.
In response, the Swiss Financial Market Supervisory Authority (FINMA) and the Swiss National Bank (SNB) stressed in a joint statement that there was no risk of direct contagion between the problems faced by certain institutions banks in the United States and the Swiss financial market.
Credit Suisse, which plunged 24% on the stock market yesterday, “satisfies the capital and liquidity requirements imposed on systemically important banks”. “If needed, the SNB will make liquidity available to Credit Suisse,” the statement said.
Market reactions have particularly weighed on the stock market value and on the price of Credit Suisse debt securities in recent days. FINMA and the SNB follow developments very closely and are also in close contact with the Federal Department of Finance in this context in order to ensure financial stability.
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The negative effects of rising interest rates
The rise in interest rates normally causes an increase in bank income through the loans granted. In Europe, according to a survey conducted by S&P among 85 banking establishments, the sector expects an average increase of 18% in its net interest income. However, this new inflationary context also has undesirable effects, in particular an increase in refinancing costs. It is also accompanied by the fear of a new recession, which would then affect all the bank’s businesses, ranging from loans to asset management, whose income is correlated to market valuations. Reassuring element: the banks of the euro zone are sufficiently solid to face a deterioration of their environment.