Credit Suisse Bounces Back But Investors Still Cautious

Faizan Hashmi Published March 16, 2023 | 06:44 PM

Credit Suisse rallied on the stock market on Thursday after grabbing a $54 billion central bank lifeline in a bid to restore investor confidence but analysts remain wary about the major lender's future

Zurich, (UrduPoint / Pakistan Point News - 16th Mar, 2023 ):Credit Suisse rallied on the stock market on Thursday after grabbing a $54 billion central bank lifeline in a bid to restore investor confidence but analysts remain wary about the major lender's future.

Switzerland's second-biggest lender suffered its worst-ever day on the stock exchange Wednesday as market fears over the risk of another global banking crisis swirled, after US tech industry lenders Silicon Valley Bank and Signature Bank imploded.

Share prices plunged more than 30 percent to 1.55 Swiss francs, pushing the Swiss National Bank to come to the rescue in a bid to reassure the markets.

Hours before the stock exchange reopened, Credit Suisse announced Thursday that it would borrow 50 billion francs from the SNB to reinforce the group.

The embattled bank said it was also making buyback offers on about $3 billion worth of debt.

"These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders," chief executive Ulrich Koerner said in a statement.

"My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs."The moves seemed to have some effect: at 1200 GMT, Credit Suisse shares were up 22 percent at 2.07 at Swiss francs.