Credit Suisse in the wake of the SVB bankruptcy
In response to the collapse, the US authorities decided to fully protect the deposits of SVB's clients and give them unrestricted access. In addition, the authorities assured that from now on all American banks would receive sufficient liquidity to prevent a compulsory sale of long-term investments and thus a similar case. Admittedly, SVB was not a usual commercial bank, but a bank that was mainly active in the riskier start-up and venture capital sector. Nevertheless, the bankruptcy of the SVB has had a lasting impact on the confidence of investors. This is shown by the fact that the fears spread from the American to the European continent. The focus of attention was in particular the major Swiss bank Credit Suisse (CS), which suffered a massive drop in its share price due to the strong uncertainty among market participants.
The Swiss National Bank (SNB) and the Swiss Financial Market Supervisory Authority (FINMA) confirmed yesterday evening that the problems of some banking institutions in the USA do not pose a direct risk of contagion to the Swiss financial market. The strict capital and liquidity requirements that apply to Swiss financial institutions ensure their stability. In addition, an unmistakable signal was sent to the markets that Credit Suisse would not be dropped and that the SNB would provide liquidity to CS if necessary. This has already led to a significant recovery in the Credit Suisse share price.