They also stress that there is no risk of contagion to the Swiss banking system
March 15 () –
The Swiss National Bank (SNB) and the Swiss Financial Market Supervisory Authority (known by the acronym FINMA), the Swiss country’s central bank and financial regulator, respectively, will provide liquidity to Credit Suisse “if necessary,” according to have reported in a joint statement.
“If necessary, the SNB will provide liquidity to Credit Suisse,” both organizations have assured. “Strict capital and liquidity requirements for Swiss financial institutions ensure their stability. Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks,” they added, however.
In the note issued, it is stated that the financial instability resulting from the collapse of Silicon Valley Bank (SVB), Signature Bank or Silvergate does not pose “a direct contagion risk for Swiss entities”. Both organizations claim that the minimum Swiss liquidity and capital requirements equal or exceed the Basel standards, because entities can “absorb the negative effects of ‘shocks’ and major crises.”
FINMA certifies that it is in “close contact” with Credit Suisse and reiterates that it complies with the regulations applicable to large banks.