Credit Suisse provides $54 billion in funds as authorities rush to avert global banking crisis | – #Credit #Suisse #billion #funds #authorities #rush #avert #global #banking #crisis
March 16 (Reuters) – Credit Suisse ( CSGN.S ) raised 54 percent on Thursday to boost liquidity and boost investor confidence after a slide in shares of the Swiss central bank fueled fears of a global financial crisis. billion said that he will borrow up to $.
Swiss bank announcement, investors global bank on a night when they are worried about a run on their savings Europe and helped offset a heavy sell-off in financial markets in Asian morning trade on Thursday after a tense session in the United States.
Credit Suisse Switzerland said in a statement on Thursday National 50 from his bank billion to the Swiss franc (54 billion dollars) said that he will use the option to borrow up to. This is a Wednesday special bank It followed assurances from central bank officials that Credit Suisse met “capital and liquidity requirements for systemically important banks” and could access central bank liquidity if needed.
Credit Suisse, 20It is the first major global bank to be given such a lifeline since the 2008 financial crisis – although central banks the coronavirus pandemic including extended liquidity to more banks during periods of market stress.
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On Thursday, Asian stocks were hit by a decline on Wall Street, and investors lost gold, bonds and dollars they bought While the bank’s announcement helped par some of those losses, trading was volatile and volatile.
“It helps. Eliminates immediate risk. But it presents us with another choice. The more we do this, the higher we tighten monetary policy inflation we have to live with – and what will it be? ?” said Damien Boey, chief equity strategist at Barrenjoey in Sydney.
“Do Bailouts Make Things Better? On the one hand, you eliminate a source of risk that is a clear and present threat to the markets. On the other hand, we are feeding this paradigm of an internal weakening of monetary policy.”
The Swiss bank’s problems have attracted the attention of investors and regulators USAfrom , to Europe, where Credit Suisse, its largest investor, said it could not provide further financing due to regulatory restrictions bank caused the sale of shares.
Concerns about Credit Suisse, USAIt added to broader banking sector fears stemming from last week’s collapse of Silicon Valley Bank ( SIVB.O ) and Signature Bank, two of its mid-sized firms.
Credit Suisse’s borrowing is fully collateralized by high-quality assets credit funds and short-term liquidity. It also announced offers for senior debt securities for up to 3 billion francs in cash.
“This additional liquidity will support Credit Suisse’s core businesses and customers as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around customer needs,” the bank said.
Investor attention is also focused on any moves by central banks and other regulators to restore confidence in the banking system, as well as any business exposure to Credit Suisse.
The death of SVP last week and Imza Bank two days later sent global banking stocks on a rollercoaster this week, with investors discounting US President Joe Biden’s guarantees and urgent steps to give banks more access to funding. coast sent to his ship.
FINMA and the Swiss central bank said there was no sign of a direct contagion risk for Swiss institutions from the turmoil in the US banking market.
Shares of Credit Suisse on Wednesday Europe bank index (.SX7P) fell 7%, a five-year high for Switzerland’s flagship bank credit and default swaps (CADS) reached a new record.
Investors flocking to the gates fueled fears of a broader threat to the financial system, and two watchdog sources told Reuters that Europe Central Bank credit Contacted banks to learn about Suisse’s risks.
The US Treasury also said it was monitoring the situation around Credit Suisse and was in contact with its global counterparts.
Reuters Graphics Reuters Graphics ‘FLIGHT TO SAFETY’
The rapid rise in interest rates has made it harder for some businesses to repay or service loans, increasing the chance of losses for lenders worried about the recession.
Traders are now betting that only last week continued inflation The Federal Reserve, which is expected to accelerate its rate hike campaign, may be forced to pause and even reverse course.
Bets on a big European Central Bank rate hike at Thursday’s meeting also quickly evaporated as Credit Suisse raised fears about the health of Europe’s banking sector. Money market prices offer made traders now the chance of a 50 basis point rate hike at the ECB meeting 20They found that it was less than %.
Concern over SVP’s demise prompted depositors to look for new homes for their money.
Ralph Hammers, chief executive of Credit Suisse rival UBS, said the turmoil in the market was more focused on money, and Deutsche Bank ( DBKGn.DE ) CEO Christian Sewing said the German lender was also seeing deposits coming in.
Added by Akriti Sharma in Bengaluru report; Reporting by Rae Wee in Singapore, Francesco Kanepa, Balazs Koranyi, Tom Sims and Marta Orosz in Frankfurt, Amanda Cooper, Lucy Raitano and Sinead Cruise in London, Noelle Illien and John Revill in Zurich, Moira Warburton in Washington and Chuck Mikolajczak in New York Writing by Dipa Babington and Sam Holmes, Edited by Matthew Lewis and Sri Navaratnam
Our standards: Thomson Reuters Trust Principles.
2023-03-16 06:21:40
Source – reuters
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