The Swiss National Bank (SNB) has thrown Credit Suisse (CS) a lifeline. With its liquidity-strengthening loan commitment of CHF 50 billion, the SNB is calming the nerves of investors in the crisis-ridden Swiss bank, as the sharp rise in prices on Thursday shows. Whether the maneuver is also suitable to stop the exodus of customers will only become apparent in the coming weeks and months.

One thing is clear: With countless scandals and costly failures, the traditional bank has lost an incredible amount of trust. This cannot be recovered overnight. Credit Suisse is far from out of the woods.

In terms of regulatory policy, the SNB's rescue operation is no glory. After all, it was not force majeure that caused the Zurich-based financial giant to falter. The high billions in losses in recent years are largely self-inflicted. The credit transactions with the American gambling booth Archegos alone cost the bank losses of 5 billion Swiss francs. The sale of the Greensill supply chain funds, marketed as low-risk, has severely damaged CS's reputation, not to mention the now smouldering multi-billion dollar litigation cost risk.

Despite everything, the commitment to Credit Suisse is right

These are just two of a number of outrageous scandals that suggest a risk management failure – officially confirmed by the Swiss Financial Market Supervisory Authority FINMA. Why shouldn't the owners be liable? Strictly speaking, Credit Suisse does not deserve the support of the Swiss central bank.

And yet the stakes are right. The fall in prices on Wednesday was the result of failed statements by the Saudi Arabian major shareholder, which were fatally linked to the turbulence surrounding the insolvency of the American Silicon Valley Bank. In this highly nervous mood, CS, currently the weakest link in the circle of Europe's largest banks, was hit particularly hard. The fall in prices threatened to trigger a panic among the already insecure customers, which could have quickly affected other banks. The Swiss central bank's aid operation is therefore not only about stabilizing Credit Suisse, but the entire system. Overall, it wants to reduce the risk of domino effects in the financial sector.

A spin-off of the Swiss business and the controlled resolution of the remaining parts of the bank within the framework of the contingency plans developed for systemically important banks such as CS in response to the 2008 financial crisis are currently not on the agenda. The capital ratios are still far too high for that. In addition, such a split, which has never been tried before, carries considerable risks.

As a possible rescue maneuver, the takeover of CS by the large (healthy) local rival UBS is repeatedly brought into play. But it is not only antitrust and regulatory hurdles that speak against this happening. An integration of CS would be accompanied by a clear cut in the workforce and would keep UBS busy internally for years. In addition, there are still incalculably high (legal) risks on Credit Suisse's balance sheet. It is toxic.

Therefore, despite the low stock market price on paper, no foreign bank has yet reached out to the problem child on Zurich's Paradeplatz. In addition, the foreign competitors know that under their flag, many customers who are deliberately looked after by a Swiss bank would seek the distance.

The SNB's large loan is now giving Credit Suisse some breathing space. However, the calm eagerly hoped for by the Executive Board is unlikely to occur in the near future. Even when the bank presents its report on the first quarter at the end of April, unpleasant headlines threaten again. Finally, a hefty loss is expected again. Finma's pending investigation report on the failure of control in the Archegos scandal also promises "bad news".

Credit Suisse can still be pleased that financial market supervisors are usually sharp in their choice of words after the discovery of grievances, but not in their punishment. FINMA may not impose fines. With its years of misconduct, Credit Suisse has brought the entire Swiss financial center into disrepute. Now it is high time to sharpen the sword of Finma.