The Swiss National Bank (SNB) is rushing to the aid of Credit Suisse (CS), which is threatened by a loss of confidence. "The SNB will provide liquidity to CS if necessary," the central bank and the Financial Market Supervisory Authority Finma said in a joint statement on Wednesday evening. Credit Suisse meets the capital and liquidity requirements placed on systemically important banks. The problems of banks in the USA do not pose a direct risk of contagion to the Swiss financial market.
The dramatic fall in the share price of Switzerland's second-largest bank had caused worldwide concern over the course of the day and plunged the financial markets into turbulence. Credit Suisse shares slumped by more than 30 percent to an all-time low of 1.55 francs on Wednesday, dragging other bank stocks in Europe and the US with them.
Around the globe, regulators, governments and other financial institutions tried to assess the risks. Individual governments called on Switzerland behind the scenes to intervene.
In the evening, the authorities came on the scene. "FINMA and the SNB are following developments very closely and, in this context, are in close contact with the Federal Department of Finance to safeguard financial stability," the statement said.