The "storm" of the banking crisis moved to Europe
Mar 17, 2023
Washington [US], March 17: When the chaos following the collapse of three US banks, Silvergate, Silicon Valley and Signature, had not yet subsided, another storm of banking crises had formed in Europe.
On March 15, the shares of Credit Suisse Bank (CS) of Switzerland suddenly plunged, at one point down to a record level of more than 30% after the main shareholder, the National Bank of Saudi Arabia, announced that it would not buy more shares of CS, according to The Guardian .
The announcement made investors worried about CS's ability to raise capital and led to a sell-off of the bank's shares during the day. CS is Europe's 17th largest bank, with total assets of $574 billion at the end of last year and is considered one of the "too big to fail" companies.
Shares of a series of other banks in Europe also fell sharply on March 15 due to concerns from CS. By yesterday, CS's share price had risen more than 35% before opening time after the company was approved by the Swiss central bank to support $ 54 billion in liquidity, according to Reuters. However, analysts at JPMorgan say this measure is not reassuring enough and there is a high probability that CS will be taken over. CS reported a loss of nearly 8 billion USD in 2022.
Source: ThanhNien Newspaper
