Swiss National Bank scanning affairs at Credit Suisse. Credit: hslergr1 from Pixabay.

The Swiss National Bank (SNB) is keenly observing the state of affairs at the embattled banking group Credit Suisse, Reuters has reported quoting the central bank’s governing board member Andrea Maechler.

On 3 October, the lender’s shares dropped by at least 11.5% and its bonds plunged record lows amid fears over the financial health of the bank.

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Despite recovering a few of the loses on the same day, the bank is still struggling to overhaul its operations without requesting additional investments from its investors.

Maechler was quoted by the news agency as saying: “We are monitoring the situation.

“They are working on a strategy due to come out at the end of October.”

Previously, SNB refused to make any comment on Credit Suisse.

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The bank, which stated that it has enough capital and liquidity to run its business, is set to reveal its overhaul strategy and third-quarter results on 27 October 2022.

In July this year, the bank disclosed its second strategy analysis in a year and named restructuring specialist Ulrich Koerner as its new CEO.

The appointment was aimed at downsizing Credit Suisse’s investment banking division and reduce over $1bn of expenditure.

According to Credit Suisse, it is mulling options to cut down its investment bank into a ‘capital-light, advisory-led’ unit. The bank is also considering strategic opportunities for its securitised products activities.

In a separate development, Credit Suisse’s Asia-Pacific wealth management business’ deputy head, Young Jin Yee, has quit the group, reported Reuters citing company memo.

A representative from the bank has also confirmed the news, added the publication.