Credit Suisse to seek USD 54 billion loan from Swiss National Bank
JAKARTA – Credit Suisse will apply for USD 54 billion loan from Swiss central bank, Swiss National Bank, to support its liquidity and secure investors’ trust following the decline of its stock price. Said step is taken following the apprehension of a possible advanced global banking crisis.
Quoted from Reuters today (16/4), Swiss National Bank also confirmed that this loan is intended to stop the mass selling of said shares in the capital market during the first trading session in the Asian stock markets. The action is related to the currently unfolding crisis in Europe and United States (US), of which the investors worry about the possible decrease in the global banks’ deposit.
Credit Suisse, in its statement, plans to utilise loan from the Swiss National Bank of up to USD 54 billion. Credit Suisse is said to have met the required amount of capital and liquidity, thus being able to access the liquidity of central bank should the need arrive.
Credit Suisse is the first renowned global bank that has received an emergency financial assistance since the financial crisis in 2008. The condition triggers doubt regarding the level of earnestness of the central bank in countering inflation through its aggressive interest rate increase policy.
For the record, Asian stock market was seen slowing down as a result of the decreased stock price in Wall Street this morning (16/3). (LK/ZH)