Global markets are shaken by the Credit Suisse event. According to the latest developments, the Swiss bank will be acquired by another Swiss bank, UBS. The Financial Times reported that UBS agreed to buy it for more than $2 billion. Credit Suisse was on the verge of bankruptcy as customers began withdrawing their money from the bank.
Credit Suisse nedir?
Credit Suisse is a leading Swiss bank and financial institution serving worldwide. Established in 1856 by Alfred Escher under the name “Schweizerische Kreditanstalt”, the bank operates mainly in the fields of investment banking, private banking and wealth management. Headquartered in Zurich, Switzerland, Credit Suisse has managed to become one of the leading companies in the sector thanks to its customer-oriented service approach and strong financial knowledge.
The founder of the bank, Alfred Escher, is essentially a Swiss politician and businessman. The purpose of the bank’s establishment was to contribute to the economic development of the country and to accelerate the industrialization process by investing in Switzerland’s railway network. Although the bank has experienced many economic crises and wars throughout history, it has become an important financial power around the world over time.
Credit Suisse operates in more than 50 countries around the world. Bank; It offers services in many countries in the Europe, America, Asia-Pacific and Middle East regions. Credit Suisse’s global presence provides its customers with the ability to provide financial services across wide geographic areas and represents the bank’s international influence and strength.
The core business areas of Credit Suisse are:
- Investment Banking: Credit Suisse provides financial services to companies and governments, such as mergers and acquisitions, debt and equity issues. It also provides capital markets and trading services to investors. The bank’s investment banking offers a wide range of products and services to meet the capital needs of global companies, governments and financial institutions.
- Private Banking: Credit Suisse offers private banking services to wealthy individuals and families. These services include services such as financial planning, investment management, portfolio management and inheritance planning. The bank also provides advisory services to individual and family offices to help private banking customers achieve their financial goals.
- Asset Management: Credit Suisse provides wealth management services for corporate and individual clients, pension funds and other financial institutions. By offering a wide range of products and services in this area, the Bank provides solutions suitable for its customers’ risk and return profiles.
- Business Banking: Credit Suisse provides banking services for small and medium businesses. These services include lending, cash management, trade finance and foreign exchange transactions.
Has Credit Suisse gone bankrupt?
Credit Suisse has been on the agenda of the markets with the crisis it has been experiencing in the last days, but we cannot say that it has sunk yet. After the bankruptcies that started in the USA, the shares of Credit Suisse also experienced the biggest decline in history. Customers began to withdraw their assets from the bank, bringing the Swiss company to the brink of bankruptcy. $10 billion in customer assets were withdrawn in just one day. During talks over the weekend, another Swiss bank, UBS, agreed to buy Credit Suisse for over $2 billion. The Swiss National Bank also offered to provide $100 billion of liquidity to UBS. Negotiating the deal has saved Credit Suisse from bankruptcy for the time being. This is not the first time that this has happened to Credit Suisse. The Bank suffered great losses in the global financial crisis in 2008 and periodically fell into a difficult situation. However, it managed to get rid of the crisis by entering the restructuring process. In 2021, although some of Credit Suisse’s customers are in trouble, the bank itself is not in danger of going bankrupt. In particular, the Archegos Capital and Greensill Capital scandals affected the bank’s financial condition and led to the resignation of some senior executives.
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Credit Suisse customer presence
Credit Suisse’s client presence may change over time and this value is regularly updated in the bank’s financial reports. As of 2022, Credit Suisse’s client assets totaled approximately CHF 1.3 trillion (approximately US$1.4 trillion). This figure includes client assets managed by the company’s many different business lines, such as private banking, investment banking and wealth management.
