One of the leading investment banks in the world, Credit Suisse from Switzerland has indicated financial material weakness which is raising huge concerns about financial stability in Europe.

The FTSE 100 index lost 75bn pounds in the UK stock market, the worst performance since the invasion of Ukraine by Russia in 2021. This poses a major threat to the health European banking system, and the ECB has called on financial institutions to disclose their level of exposure to Credit Suisse.

The US Treasury department is also monitoring the situation following the crisis of the Silicon Valley Bank, SVB. Swiss Central Bank and Swiss Financial Market Supervisory Authority (FINMA)  pointed out in a joint statement, that there are no indications of a direct risk of contagion for Swiss institutions due to the current turmoil in the US banking market.

Saudi National Bank the largest shareholder in Credit Suisse refused to offer additional financial relief. In a statement from its Chairman Ammar Al Khudairy said “We are pleased with the transformation plan they have put forward. It is a very strong bank.”

Proshare News will continue to monitor the Credit Suisse situation and its implications for frontier economies like Nigeria.