Credit Suisse, a Swiss bank, recently secured £45bn from the Swiss central bank to address concerns about its future.
Despite a brief rise in its shares, the bank’s shares are now plummeting. Markets across the UK and Europe have also turned negative, coinciding with the failure of two mid-sized US banks. Wall Street giants injected $30bn into a smaller domestic bank called First Republic to prevent its collapse.
This rescue by 11 banks, including JP Morgan and Citigroup, helped to calm stock markets. However, a sell-off in Credit Suisse shares has gathered pace, sinking nearly 70% over the past week.
Concerns about the health of the banking system have been raised as Silicon Valley Bank and Signature Bank have also failed. US regulators ensured customers had full access to their money over the weekend, but worries have emerged about San Francisco-based First Republic being the next bank at risk.