Credit Suisse's major shareholder has said it will not provide further financial support to the troubled banking giant, Bloomberg reported.
Credit Suisse's stock price fell 20% in trading on March 15, the lowest level in the history of the bank's establishment.
Credit Suisse's market value also fell further this week on concerns about two US bank failures. Its annual report pointed to "material weaknesses" in the bank's internal controls.
Credit Suisse Bank. Photo: Reuters
Credit Suisse reported a net loss of 7.3 billion Swiss francs ($7.8 billion) in fiscal 2022 amid massive withdrawals from its clients, including in the asset management business.
Rapidly rising interest rates are making it harder for some businesses to repay bank loans, increasing the risk for lenders who are also worried about an economic downturn, according to Bloomberg.
However, a source told Reuters that European Central Bank policymakers are still leaning towards a half-point rate hike on March 15 because they believe inflation will remain very high in the coming years.
On the same day, March 15, The New York Times reported that global stock markets fell after investors became concerned about the health of the banking sector.
European markets were hit hard. Share values of many of the region's largest banks fell sharply.
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