Credit Suisse to borrow as much as $54 billion from Swiss central bank

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Credit Suisse, one of the largest banks in Europe, has announced that it plans to borrow as much as $54 billion from the Swiss central bank to improve its liquidity and stability after its shares plunged to a new low on Wednesday.

The bank said it will access a “covered loan facility” and a “short-term liquidity facility” from the Swiss National Bank (SNB), as well as buy back about $3 billion in debt, according to a statement released on its website.

The move comes after Credit Suisse’s biggest shareholder, Saudi National Bank, said it would not provide further assistance to the Swiss lender, which has been struggling with a series of scandals and losses in recent years

Credit Suisse’s share price dropped by nearly 30% on Wednesday, hitting an all-time low of 1.6 Swiss francs ($1.73), before recovering slightly to close at 1.7 francs ($1.83). The slump also dragged down other major European banks, sparking fears of a new financial crisis.

Credit Suisse’s chairman Axel Lehmann defended the bank’s financial health and said it had taken measures to reduce risks and simplify its structure. He also ruled out any need for government assistance.

The SNB said it was ready to support Credit Suisse if needed and that it believed the bank had enough capital and liquidity to meet its obligations.

Credit Suisse is one of the world’s leading financial services providers, with operations in more than 50 countries and over 45,000 employees. It offers wealth management, investment banking, asset management and corporate banking services to clients worldwide.

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