Credit Suisse down 10% among further liquidity fears 📉

1:03 PM 17 March 2023
  • The share price is heading toward weekly lows. The CHF 2 per share level has not been maintained;
  • According to Morningstar, the bank has recorded net outflows of more than $200 million from US and European funds under management since March 13;
  • The market fears that liquidity from the SNB will be insufficient. The Saudis will not provide liquidity for regulatory reasons;
  • U.S. investors, through Rosen Law, have launched a class action lawsuit against the bank.

The 5-year credit default swaps show that other than Credit Suisse, the market sees no significant risk of collapse of other large European banks. Source: Bloomberg

  • The bank is undergoing a massive strategic restructuring to restore stability and profitability after a series of losses but the market currently has no confidence in its ultimate success. 
  • The Swiss central bank has mobilized CHF 50 billion in funding lines for Credit Suisse, of which the bank has already drawn CHF 39 billion - roughly how much of a liquidity deficit it could run;
  • CS, however, cannot count on help from its main shareholders, Saudi National Bank, which holds 9.9% of the bank's shares and cannot increase its stake above 10%;
  • It is unclear whether the SNB will opt for a possible further bailout of the bank's financial situation, a higher amount in the face of potential political opposition. Switzerland's popular right-wing Swiss People Party has voiced criticism of the SNB's decision of the bank;
  • Significant measures by the SNB may not be enough for customers to regain trust and want to use its services again. According to Syz Bank's comments, a full SNB guarantee on all deposits and a capital injection giving the bank more time to restructure could help.
  • Rosen Law Firm, a law firm specializing in class action lawsuits, has filed a complaint in a New Jersey court on behalf of U.S. investors. The firm claims that Credit Suisse made "false and misleading statements" in its annual reports.
  • Last week, Credit Suisse admitted that it had "material weaknesses" in its reporting and control procedures but that these did not affect its financial data. The bank published a delayed annual report for 2022. Rosen Law says this may have caused "irregularities" in results and misled its shareholders.

Credit Suisse shares, M5 interval. The price reaction indicates that the market hasn't quite 'bought the positive scenario' after the liquidity injection from the SNB. The stock is losing nearly 10%. Source: xStaiton5

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app
Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence