ZURICH (Reuters) – Credit Suisse must be able to deal with the $ 4.7 billion loss from the Archegos hedge fund and the collapse of the $ 10 billion Greensill fund, without significant risk to the health of the Swiss financial sector from the episode, the IMF’s country mission. said the head.
Credit Suisse shares have fallen 25% within a month, with Switzerland’s second largest bank shaken from its collapsing exposure first to Greensill Capital and then Archegos Capital Management.
“Our assessment is that the incident was not systematic and manageable by Credit Suisse,” Mark Horton told reporters after the International Monetary Fund (IMF) published its report on Switzerland.
Credit Suisse took a number of actions; changing the management team, limiting dividends, and conducting external assessments of some developments that have occurred, “Horton said, Wednesday.
“We do not see this as seriously damaging Switzerland to either the financial sector or the economy as a whole,” he added.
Credit Suisse entered the coronavirus crisis with strong capital and a strong position, said Horton, adding that it had sufficient resources to manage the problem.
“This is seen as an internal problem that needs to be handled by the bank itself and has started to be done,” he said.
Reporting by John Revill; Edited by Alexander Smith