Credit Suisse shares soar after announcing central bank aid

Credit Suisse's shares have soared 30 per cent after it announced it will move to shore up its finances by borrowing up to nearly $54 billion from the Swiss central bank.

It's a massive swing Thursday after its shares plunged 30 per cent on the SIX stock exchange a day earlier after its biggest shareholder said it would not put more money into the Swiss lender.

That dragged down other European banks as fears about the banking system expanded overseas following the collapse of some US banks.

Credit Suisse, which was beset by problems long before the US bank failures, said Thursday that it would exercise an option to borrow up to 50 billion francs ($53.7 billion) from the central bank.

“This additional liquidity would support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs,” the bank said.

Fanning new fears about the health of financial institutions following the recent collapse of Silicon Valley Bank and Signature Bank in the US, at one point, Credit Suisse shares lost more than a quarter of their value on Wednesday.

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