SNB and FINMA Jointly Announce Credit Suisse Meets ‘Strict Capital and Liquidity Requirements’

The Swiss National Bank (SNB) and the Swiss financial market regulator FINMA have jointly announced that Credit Suisse (CS) has met the “strict capital and liquidity requirements” imposed on banks of importance to the wider financial system. The announcement comes after investors dumped shares in the Swiss bank earlier in the day, sending them to a new record low after its biggest backer, Saudi National Bank, appeared to rule out providing any more funding.

The stock plummeted as much as 30% after Saudi National Bank Chairman Ammar Al Khudairy told Bloomberg TV that the bank was limited in its investment due to regulations from various jurisdictions.

The SNB and FINMA’s joint statement also said that the SNB was ready to provide financial support to Credit Suisse if needed. This announcement comes after two U.S. banks failed last week, causing global markets to tumble over banking fears in the U.S. and Europe.

The SNB and FINMA’s statement is intended to provide reassurance to investors and the public that Credit Suisse is meeting the necessary requirements for a bank of its size and importance. The SNB and FINMA have also said that they will continue to monitor the situation and provide support if needed.

The joint statement from the SNB and FINMA is an important step in restoring confidence in the banking sector in Switzerland and beyond. It remains to be seen whether the announcement will be enough to calm investors’ fears and stabilize the markets.