Credit Suisse plans to borrow up to 50 billion euros from the central bank, after its stock market crash

The Credit Suisse bank announced on Thursday March 16 that it would borrow up to 50 billion Swiss francs (50.6 billion euros) from the Swiss central bank to “to strenghten” the group, whose title collapsed on the stock market on Wednesday.

“This additional liquidity will support Credit Suisse’s core businesses and its clients, as Credit Suisse takes the necessary steps to create a simpler, more focused bank that is focused on client needs.”the second Swiss bank said in a statement.

Tuesday, Credit Suisse had recognized “substantial weaknesses” in its internal controls. The refusal of its main shareholder, the Saudi National Bank, to invest more to support the bank in difficulty for two years had then precipitated its tumble on the stock market (-24.24% at the close, the worst drop in its history), on Wednesday, as investors worried about the risk of contagion following the collapse of US bank SVB.

Victims of a domino effect, European banking stocks had collapsed by more than 10% for Deutsche Bank, Commerzbank, Société Générale, BNP Paribas, Banco Sabadell and Banca Monte dei Paschi.