PanamaTimes

Wednesday, Oct 09, 2024

Swiss sight deposits fall, suggesting Credit Suisse, UBS took less emergency help

Swiss sight deposits fall, suggesting Credit Suisse, UBS took less emergency help

Sight deposits held by the Swiss National Bank declined last week, data showed on Monday, suggesting that Credit Suisse and UBS may have cut back on use of emergency funds offered them to facilitate their planned merger, according to Reuters.
Total sight deposits — meaning commercial bank cash held by the central bank overnight — fell to 563.566 billion Swiss francs ($614.71 billion) from 567.003 billion francs in the previous week, the SNB data showed.

Sight deposits had risen 51.8 billion francs the week before, the second biggest increase on record and probably linked to UBS and Credit Suisse tapping the liquidity lines offered by the SNB and Swiss government after the takeover was announced.

Both banks have been offered 200 billion francs in emergency liquidity after Credit Suisse suffered massive outflows from worried investors. Swiss finance minister Karin Keller-Sutter said last week it had tapped a “large multi-billion” sum

Credit Suisse had already tapped 50 billion francs under ordinary liquidity help before the takeover was announced.

The SNB and Credit Suisse both declined to comment on the changes in sight deposits on Monday. UBS did not respond to a request for comment.

The data indicated that the two commercial banks were probably accessing less liquidity than the week before, said Karsten Junius, an economist at J.Safra Sarasin.

“This is a good sign as it indicates that stress in the Swiss banking system is falling a bit,” Junius said.

The decline could also be due to the SNB intervening in the currency markets, by selling foreign currencies it holds in exchange for francs held on sight by the commercial banks.

The SNB has recently indicated its willingness to sell forex to help prop up the value of the Swiss franc as a check against imported inflation.

“It is possible that the SNB intervened ...as some international investors might have questioned the impact the Credit Suisse story might have on the safe-haven status of the franc,” said Junius.
Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
The Impact of Online Culture on Young Women: Survey Insights
Hypersonic Jet to Revolutionize Air Travel
Facilitated Communication: Miracle Tool or Manipulative Method?
US Election 2024: A Deadlock Between Trump and Harris
Dominica Sells Citizenship to Boost Climate Resilience
Elon Musk's X Faces Fines and Account Error in Brazil
Scott Jennings leaves CNN panel speechless as he tears apart Tim Walz's flimsy excuse of being "too dumb to tell the truth."
Earth Faces Severe Geomagnetic Storm from Solar Flare
China-Led Bloc Challenges The Quad in Indo-Pacific Region
Biden-Harris sent forklifts to open the border when Texas built a razor wall.
Storm Helene Devastates Eastern and Midwestern US, Claims 44 Lives
Trump Taps Elon Musk to Lead Federal Spending Cuts, Promising Trillions in Savings
Importing voters: With an election looming, the U.S. is approving citizenship applications at the fastest speed in years.
Hurricane Helene Set to Slam Florida with 'Unsurvivable' Conditions
El Salvadoran President Bukele at the UN: "Some complain that we put thousands in prison. In reality, we set millions free."
Google Commits 120 Million Dollars for Global AI Education: Sundar Pichai
Tennessee Woman Sentenced for Attempted Murder-For-Hire
Amazon Rainforest Suffers Massive Deforestation
Earth's Planetary Boundaries Breached
Elon Musk’s X Circumvents Brazil’s Supreme Court Block
Brazilian Judge Accuses Elon Musk’s X of Circumventing Court-Ordered Ban
Venezuelan Opposition Leader Coerced into Recognizing Maduro's Victory
Brazil's Firefighters Battle Amazon Blazes and Arsonists
X Social Media Platform Ordered Offline Again in Brazil
Global Workdays Required to Afford iPhone 16
In his podcast, Joe Rogan rightly questioned, "YOU NEED A VACCINE PASSPORT FOR FOOD, BUT VOTER ID IS ‘RACIST'?!"
Trump Unveils New Cryptocurrency Venture Amidst Campaign
X Update Enables App to Bypass Brazil Ban, Say Internet Providers
Delta Airlines Sets Strict Wardrobe Guidelines for Flight Attendants
Norway Achieves Milestone in Electric Vehicle Adoption
Hezbollah Hit by Explosive Pagers in Lebanon
Ex-Soldier Describes Trump Assassination Suspect's Troubled Ukraine Stint
Ghislaine Maxwell's Sex-Trafficking Conviction Upheld by Appeals Court
El Salvador's Bold Move: President Bukele Declares End to External Debt Reliance, Thanks to Bitcoin
Murdoch Family Succession Battle Begins
TikTok Faces Potential Ban in the US Amid Free Speech Concerns
Secret Service Investigates Elon Musk's Controversial Social Media Post
Meta Bans Russian State Media Networks
Impact and Aftermath of 9/11 Attacks on the US and the World
Internet Surpasses TV as UK's Leading News Source
Significant Corruption Concerns in Covid Contracts
MORAES WILL NOT SILENCE ME: "I WAS BORN FREE, I WILL DIE FREE!"
BRAZIL’S SUPREME COURT MINISTER ORDERS EXPLANATION ON X BLOCKING
Porn streamer OnlyFans paid owner $630mn in dividends
Donald Trump will not face sentencing over his 'hush money' conviction before the US presidential election on November 5, after a Manhattan judge granted his request to delay the proceeding
Return of Brazilian Artworks to Bahia
France Pilots Mobile Phone Ban in Schools
WHO-Led Study Finds No Link Between Mobile Phones and Brain Cancer
Kamala Harris is in Detroit and has a new accent again
EU Rejects Maduro’s Election Win Claim in Venezuela
×