Global investment bank Credit Suisse is reportedly planning to borrow up to $54 billion from the Swiss Central Bank as troubles mount for the entity. As the Silicon Valley Bank (SVB) crisis unfolds in the US banking sector, Credit Suisse has announced its plans to protect itself as it comes under the scanner for a myriad of reasons.
According to Financial Times, Credit Suisse is also planning to buy back about $3 billion of its debt along with borrowing this money. The idea behind this borrowing and buy back is to enhance its liquidity and calm investors. All the moves come just a day after Credit Suisse's shares nose-dived to touch a new low.
The report adds that the Swiss National Bank has also announced that it would be willing to provide Credit Suisse the help it needs in order to enhance its liquidity. On Wednesday, the under-the-cosh global investment bank's shares fell by almost 30 per cent on the backdrop of a massive selling spree.
It must be noted that the sell-off in Credit Suisse stocks reportedly came after one of the biggest shareholders of Credit Suisse, Saudi National Bank said that it would not invest anymore in the lender. Further, in response to this, a statement by Credit Suisse affirms its decision. As per FT, in the official statement, the lender said that it is doing this "to pre-emptively strengthen its liquidity."