The largest shareholder of Credit Suisse Group AG has ruled out giving the bank any financial support. It gave regulatory concerns as justification for its step back.
Chairman Ammar Al Khudairy responded, "absolutely not," when asked by Bloomberg TV if the Saudi National Bank was willing to provide Credit Suisse with extra liquidity.
After purchasing 9.9% of Credit Suisse's shares last year, Saudi National Bank, whose 37 percent is held by the kingdom's sovereign wealth fund, became the bank's largest shareholder.
Axel Lehmann, the bank's chairman, stated that the institution is working to restore client confidence following a string of slip-ups.
Credit Suisse reported on Tuesday that client outflows have stabilised but not reversed, and as a result, its bonds fell, some of their prices hitting record lows. The price of many of the bank's dollar-denominated extra tier 1 bonds dropped to record lows, falling more than four cents. Credit Suisse stated that client "outflows stabilised at much lower levels but had not yet reversed as of the date of this report" in its 2022 annual report, which was released on Tuesday.
As a result of the market instability caused by the failures of Silicon Valley Bank and Signature Bank, its shares fell to a record low on Monday and the cost of default insurance increased to all-time highs.