Credit Suisse has borrowed up to $54 billion from the Swiss Central Bank to support liquidity and restore investor confidence
German Chancellor Olaf Scholz confirmed in an interview with the German daily newspaper Handelsblatt that “the banking system enjoys greater flexibility and that the economy is stronger than it was last time, which guarantees the safety of savings.”
Schulz said in his interview with the German newspaper: “I do not see any danger… The monetary system is no longer as fragile as it was before the financial crisis,” referring to the 2008 crisis that witnessed the collapse of Lehman Brothers.
Schultz tried to dispel fears of a new financial crisis due to the collapse of Silicon Valley Bank and the problems suffered by Credit Suisse.
The German chancellor’s reassurances come after Credit Suisse borrowed up to $54 billion from the Swiss central bank to support liquidity and restore investor confidence, and after the collapse of US bank Silicon Valley earlier this month.
“The deposits of German savers are safe. Not only because of the greater flexibility of the banking system and stricter regulations, but also because of our economic strength,” Scholz was quoted as saying. “We see that in the United States … in Great Britain … and more recently in Switzerland, officials are acting quickly and decisively, and that creates a sense of security that all citizens of this country can count on as well.”