SVB collapse: Swiss National Bank tries to steady markets after Credit Suisse selloff

BInking authorities Switzerland Wednesday’s statement pledging to provide for the community was released Credit Suisse As soon as there were doubts about its viability, financial assistance was available.

The statement was made by the Swiss Financial Market Supervisory Authority, and the Swiss National Bank. It came after the megabank had lost its value. This raises fears about what the fallout might be. Silicon Valley Bank’s The global financial system is in danger of collapse.

“Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks. If necessary, the SNB will provide CS with liquidity,” The agencies stated.

Credit Suisse suffered massive losses after its largest shareholder, the chairman, said it would not increase its stake.

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Credit Suisse is a global bank of systemic importance and had approximately $570 billion in assets as of the end in 2022. However, the market has doubted its strength in recent days.

The government claimed that “the problems of certain banks in the USA do not pose a direct risk of contagion for the Swiss financial markets. The strict capital and liquidity requirements applicable to Swiss financial institutions ensure their stability.”

The statement also stated that Swiss regulation requires strong capital, liquidity buffers, and that systematically significant firms like Credit Suisse need to meet higher standards.

“This allows negative effects of major crises and shocks to be absorbed,” According to the central bank,

Wednesday was another difficult day for the banking industry.

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First Republic Bank was among the top regional banks that experienced stock market declines. The San Francisco-based bank closed down more than 21%. The wider market was also in the red with the Dow Jones Industrial Average falling by 600 points and closing down at 300 points.

The Chicago Board Options Exchange Volatility Index (or VIX), captured generalized anxiety on Wall Street. “fear index.” Around the close of Wednesday’s markets, the VIX was almost 10% higher.