Shares in the Swiss lender plunged more than 30% at one point yesterday to a record low of about 1.56 Swiss francs (£1.39) a share, after its top shareholder, the Saudi National Bank (SNB), ruled out providing it with fresh funding because of regulations that cap its stake – currently 9.9% – at 10%.
That compounded panic about potential weaknesses across a banking sector still reeling from Silicon Valley Bank’s (SVB) collapse as well as fears over continuing problems at the Swiss bank, which – as Europe’s 17th largest lender by assets – dwarfs SVB and is deemed systemically important to the global financial system .
How worried should we be?
The Bank of England reiterated its statement that the UK banking system is not at risk and “remains safe, sound and well-capitalised”. Staff at the Bank are understood to be monitoring developments in the financial sector closely.
Stocks in many European banks other than Credit Suisse also plunged yesterday as traders took fright. However, it is important to remember that share prices reflect investor sentiment rather than the real strength of balance sheets.
Bu hikaye The Guardian dergisinin March 16, 2023 sayısından alınmıştır.
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Bu hikaye The Guardian dergisinin March 16, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Giriş Yap
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