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Credit Suisse Shares Soar 30% After Requesting Loan from Swiss National Bank

On March 16, Credit Suisse shares rose by more than 30% in early morning European time, following the announcement that the bank will borrow up to CHF 50 billion ($53.68 billion) from the Swiss central bank under a covered loan facility and a short-term liquidity facility.

The Swiss National Bank and the Swiss Financial Market Supervisory Authority stated that Credit Suisse meets the capital and liquidity criteria set for systemically important banks.

This news comes after Credit Suisse shares hit a record low for the second consecutive day on March 15. The Saudi National Bank (SNB), Credit Suisse’s largest shareholder, revealed that it could not increase its financial support to the bank due to regulatory violations that would arise from holding a stake in Credit Suisse of more than 10%.

Following the announcement, other bank stocks also rallied. Julius Bear rose by 9.8%, UBS rose by 9.8%, Deutsche Bank rose by 5.6%, HSBC rose by 3.8%, Barclays rose by 3.8%, while RBS and Lloyds stocks rose by 3.1% and 2.9%, respectively.

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