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European banks rise after Credit Suisse secures support from Swiss authorities

Published 16/03/2023, 09:08 pm
© Reuters.
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By Scott Kanowsky 

Investing.com -- European banks marched higher on Thursday, spurred on by a jump in Credit Suisse (SIX:CSGN) shares after Swiss authorities promised to provide fresh liquidity to the embattled lender if necessary.

The Euro Stoxx Banks index jumped by more than 1%, highlighted by gains for Santander (BME:SAN) in Spain, Commerzbank (ETR:CBKG) in Germany, and Italy's UniCredit (BIT:CRDI).

The uptick marks a rebound from declines posted on Wednesday that were sparked by an announcement from Credit Suisse's top shareholder that it would not inject any new capital.

But overnight the Swiss National Bank unveiled a 50-billion-franc support line to Credit Suisse, adding that the Zurich-based group met all the standards for liquidity and capital that apply to systemically crucial banks.

They said that there was consequently no risk of contagion to Credit Suisse from the volatility in the U.S. banking system, where three smaller lenders collapsed in the space of a week.

Following the SNB's statement, Credit Suisse stock surged by as much as a record 40%, topping the regional Stoxx 600 index.

 

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