Swiss National Bank (SNB) and the Swiss Financial Market Supervisory Authority (FINMA) have announced that they will provide Credit Suisse Group with additional liquidity if required.
The move is aimed at offering relief to the embattled Swiss bank and prevent a global banking crisis.
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It coincides with the bank’s announcement to borrow up to CHF50bn ($54bn) from the SNB to raise its liquidity and investor confidence.
The borrowing will be made under a covered loan facility and a short-term liquidity facility.
In a joint statement, SNB and FINMA said: “Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks.
“If necessary, the SNB will provide CS with liquidity.”
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By GlobalDataThe regulatory assurance makes Credit Suisse the first key global bank to receive an emergency rescue package since the 2008 financial disaster.
The decision comes after FINMA announced that it would not to launch any proceedings against the Credit Suisse chairman over his statement on outflows.
The bank, which faced a series of setbacks in the last few years, also postponed its annual report after getting a last-minute intervention from the US Securities and Exchange Commission (SEC).
Responding to the latest regulatory help, Credit Suisse CEO Ulrich Koerner said: “We thank the SNB and FINMA as we execute our strategic transformation.
“My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs.”
In addition, the shares of Credit Suisse witnessed a deep slump on Wednesday after its top investor Saudi National Bank revealed that it would not offer any additional help to the beleaguered bank, reported CNBC.
