Global financial markets heaved a sigh of relief after the Swiss National Bank (SNB) came to the rescue of Credit Suisse with a $54-billion lifeline even as the European Central Bank pressed on with its plan to raise interest rates by half a per cent despite the turmoil in the banking sector.
Credit Suisse:-
- It is a global investment bank and financial services firm founded in 1856. It is based in (Zurich) Switzerland.
- It maintains offices in all major financial centers around the world and is one of the nine global “bulge bracket” banks providing services in investment banking, private banking, asset management, and shared services.
- It is known for strict bank-client confidentiality and banking secrecy and recognised as a global systemically important bank (G-SIB) by the Financial Stability Board (FSB).
- Credit Suisse has had a troubled history, having braced multiple scandals in recent years over different issues, including money laundering charges.
India impact:-
- Back in India troubles at Credit Suisee are unlikely to be disruptive for the Indian financial system.
- Brokerage firm Jefferies said though relatively small in terms of size and scale of operations, with just over ₹20,000 crore in assets, Credit Suisse is more relevant to India’s financial system than Silicon Valley Bank (SVB), though it would not be disruptive.
- SNB’s lifeline will address concerns about the international financial system following the collapse of two US banks – California-based Silicon Valley Bank and New York-based Signature Bank.
