Credit Suisse, which has a history of 166 years, has been plagued by problems due to years of poor management and ineffective risk control.

(European News Agency)

[Financial Channel/Comprehensive Report] The largest shareholder of Credit Suisse, the Saudi National Bank, said that the recent panic against Credit Suisse is "unfounded" and that Credit Suisse can rely on itself to tide over the difficulties.

The closure of Silicon Valley Bank in the United States last week caused panic in financial stocks, and then Credit Suisse, one of the largest investment banks in Europe, followed suit. The stock price fell to a historical low on Wednesday (15th), and Credit Suisse announced on the same day that it had successfully approved the secured loan Borrow 50 billion Swiss francs (NT$1.64 trillion) from the Swiss National Bank to strengthen liquidity.

On Thursday (16th), it rose more than 20% intraday, and the stock price temporarily reported at 2.07 Swiss francs, an increase of 21.86%.

Please read on...

"It's just a small scare. I think it's completely unfounded, both for Credit Suisse and for the market as a whole," said Ammar Al Khudairy, chairman of the National Bank of Saudi Arabia, adding that there has been no discussion with Credit Suisse about increasing its holdings. Regarding the shares, as far as he knows, Credit Suisse has never sought any support.

However, given regulatory constraints, it will be difficult for the National Bank of Saudi Arabia to increase its stake beyond 10%.

Ammar Al Khudairy pointed out that the recent collapse of Silicon Valley Bank is different from the financial tsunami in 2008, as US regulators stopped the crisis in time.

“We did have a hiccup last week, but it’s nowhere near where it was in 2008. It’s just an isolated incident and regulators have cut off any possibility of spillover.”

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.

related news