The Swiss bank Credit Suisse will borrow up to 50 billion Swiss francs (50.6 billion euros) from the Swiss central bank. That makes Switzerland the second largest lender early Thursday morning known. The Credit Suisse was in dire straits when it came out annual report published on Tuesday showed that the internal controls on financial reporting at the Swiss bank are insufficient.
The largest shareholder, Saudi National Bank, announced that it would cut off the money tap for Credit Suisse. On Wednesday, the series of setbacks translated into the stock market; Credit Suisse lost a quarter of its market value, a resounding record low for the bank. The Swiss central bank announced after the close of the stock markets that it could step in to save Credit Suisse; the bank in need accepted that offer the same evening.
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The banking world has been unsettled since the US Silicon Valley Bank faltered last Friday. The US government took control of the bank shortly afterwards and calmed the sector, but prices are still volatile. European and Dutch banks are also affected: ING, ABN Amro, Deutsche Bank and BNP Paribas closed Wednesday with a loss of 9 to 10 percent.