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Credit Suisse withdrew £55 billion before rescue

Nepalkhabar

Nepalkhabar

 |  Kathmandu

(Photo Credit: Credit Suisse Website)

The size of the bank run that led to Credit Suisse's state-backed bailout in March has been made public.

The largest Swiss bank reported that in the first three months of 2023, 61.2 billion Swiss francs (£55.2 billion; $68.6 billion) departed the bank.

It was released along with the bank's projected final set of financial results.

Its compelled sale to competing Swiss bank UBS is anticipated to close soon.

At the end of March, the flagship wealth management division of Credit Suisse reported managing 502.5 billion francs less assets than it did at the same time last year, according to a statement from the company.

"These outflows have moderated but have not yet reversed as of April 24, 2023," it added.

After being affected by the market turbulence that followed the failures of Silicon Valley Bank and Signature Bank in the US in March, clients of Credit Suisse began withdrawing money from the bank.

Authorities in Switzerland put prepared a rescue plan for Credit Suisse.

Financial guarantees of more than 200 billion Swiss francs were included, and UBS agreed to acquire Credit Suisse.

Credit Suisse has experienced a number of problems recently, including charges of money laundering and financial losses.

The business reported a 7.3 billion Swiss franc deficit in 2022, its worst year since the financial crisis of 2008, and had earlier declared that it would not expect to break even until 2024.



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