Bank Crisis: Now Credit Suisse is on the verge of bankruptcy, shares fell 25% in one day, know what will be the effect

New Delhi: New Delhi: The pace of banking crisis that started in America is increasing instead of stopping. The heat of the banking crisis that started in America is now reaching Europe. Europe’s largest bank Credit Suisse (Credit Suisse Bank Crisis) is now facing a crisis. Credit Suisse shares continue to fall heavily. The shares of this bank fell by 25 per cent in one day.

Shares in Switzerland’s Credit Suisse hit a record low on Wednesday morning after its largest shareholder said it could not pump in more money to support the bank. This information has been given in the media report. Trading in Credit Suisse shares was halted several times by the stock exchange operator on Wednesday as volumes surged and the stock plunged 20 percent, The Guardian reported. Credit Suisse shares fell below 2 Swiss currency for the first time on Wednesday morning, as concerns over the banking sector pushed European stock markets into the deep red.

Ammar Al Khudairi, president of the Saudi National Bank, said this morning that his bank would not be able to inject more money into Credit Suisse if there was another call for additional liquidity. The Saudi National Bank is currently Credit Suisse’s largest investor with 9.9 percent of its shares, having participated in its capital raise last year.

On Tuesday, Credit Suisse published its annual report for 2022, showing it had identified material weaknesses in its internal controls over financial reporting. Last month, Credit Suisse reported its biggest annual loss since the 2008 global financial crisis, when customers pulled billions out of the bank. Britain’s FTSE 100 stock index fell to its lowest level since last December, The Guardian reported, as a fall in Credit Suisse shares undermined confidence in the city.

The FTSE 100 fell 193 points, or 2.5 percent, to 7,443, meaning it has lost all of its gains for 2023 (it hit a record high of over 8,000 points last month). European banking shares are under fresh pressure on Wednesday, with Swiss bank UBS down 6.2 percent, Germany’s Deutsche Bank down 6.4 percent and France’s Societe Generale down 9.5 percent. The Guardian reported that Barclays fell 6.5 per cent in London, while Standard Chartered fell 5.5 per cent and NatWest 4.4 per cent.