European Central Bank supervisors see no contagion for eurozone banks following the bailout of Swiss bank Credit Suisse, Reuters suggests, citing an inside source from the board. The body met this Friday urgently after the latest developments in the banking sector. Credit Suisse was rescued this week by the Swiss National Bank after it requested an emergency loan of up to 54 billion euros to support its liquidity.
The ECB held an extraordinary meeting of the supervisory board, the second this week. The purpose of the meeting was to analyze the tension in the banking sector after the recent market volatility.
Besides, Reuters notes that supervisors have been informed that deposits in all banks in the eurozone are stable and that Credit Suisse’s risk exposure is negligible.
Last Wednesday, the day Credit Suisse collapsed and a new crisis began, the ECB contacted eurozone banks to ascertain the risk of the Swiss venture.
As far as Spanish banks are concerned, no institution has “relevant” risks to Credit Suisse. Without disclosing numbers for now, Banco Santander’s exposure “absolutely irrelevant” and BBVA’s risk is “negligible” and for CaixaBank, people familiar with the matter point to “irrelevant” risk.
For this reason, these sources rule out a “big panic” over the collapse of Credit Suisse, although they acknowledge some nervousness in the banking sector.
Source: El Independiente