While Credit Suisse shares fell more than 10% to start the week, the Swiss bank insisted that the balance sheet is healthy.
The bank will announce a restructuring plan in the coming days. The bank had been struggling for quite some time, and given market volatility, its solvency may be the better story rather than the concern.
According to the Financial Times, Credit Suisse executives spent the weekend assuring large clients that the bank has solid liquidity and capital, hoping to prevent a run on the bank this week.
The Credit Suisse initiatives are an interesting story to follow for many banks, as the bank is looking to strengthen its core competency of wealth management, and slow its focus on investment banking business.
Analysts backed the bank’s claim that Credit Suisse’s liquidity is healthy. The bank had more than $735 Billion in assets after second quarter.
Credit Suisse market cap has fallen by 50% in 2022, but given the volatility in the market, large financial institutions still seem to be stable.