Credit Suisse To Borrow 50 Billion Swiss Francs

Credit Suisse Group AG on Thursday said it will borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank, in what it called "decisive action" to strengthen its liquidity, Reuters has reported.

Swiss regulators pledged a liquidity lifeline to Credit Suisse in an unprecedented move by a central bank after the flagship Swiss lender's shares fell by as much as 30% on Wednesday, Reuters reported.

Credit Suisse said the borrowing will be made under the covered loan facility and a short-term liquidity facility, fully collateralized by high quality assets.
Shares in credit Suisse dived to a fresh all-time low for the 2nd consecutive day after a top investor in the Swiss bank said it would not be able to provide any more cash due to regulatory restrictions.

The stock has dropped as much as 30% at one point in trade and was last down 18%. A Reuters reports said that Saudi National Bank, could not provide the Swiss bank with any further financial assistance, sparking the latest downtrend.

Meanwhile, Asian markets fell on the news as worries over more banks being vulnerable started gathering momentum. The Japanese Nikkei fell more than 1%, while the Korean Kospi was down 0.3% in trade. Indian stocks are expected to open lower and could fall for the sixth straight day of trade.