According to SNB Governing Board member Andrea Maechler, the SNB is actively monitoring the circumstances at Credit Suisse.
In response to worries over its capacity to restructure its business without requesting further funding from investors, Switzerland’s second-largest bank saw its shares fall by as much as 11.5% and its bonds to record lows on Monday, before recovering some of the losses.
Maechler stated on the margins of a Zurich event, “We are following the situation. They are developing a plan that will be released at the end of October.
The SNB has previously neglected to comment on Credit Suisse, despite the firm’s claims that it has a solid capital foundation and liquidity. On October 27, the organization is expected to release third-quarter earnings and specifics of a restructuring plan.
Credit Suisse replaced its CEO in July and launched its second strategic review in a year. Ulrich Koerner, a restructuring expert, was hired to lower its investment banking division’s costs by more than $1 billion.
According to Credit Suisse, the bank is looking at ways to reduce its investment bank and turn it into a “capital-light, advisory-led” operation. It is also looking at strategic possibilities for its securitized products division.
