Inderes analyst Matias Arola does not see much concern in the Nordic banks’ situation in light of the current information, but the situation can change quickly.
The news that the Swiss National Bank is supporting the troubled Credit Suisse bank was received positively in the market, says the Inderes analyst who visited in the morning Matias Arola.
– When Credit Suisse shares are traded in the United States, the share price clearly recovers there. It seems that the market has calmed down to this situation, says Ahola.
On the night between Wednesday and Thursday, the Credit Suisse bank announced that it would take a loan of 50 billion Swiss francs from the Swiss central bank SNB, i.e. a good 50 billion euros. According to the bank, taking a loan is a “decisive step” in order to strengthen its ability to pay.
On Wednesday, Credit Suisse’s share price was down more than 30 percent and finally closed down 24 percent.
According to Arola, the loan is massive, but it was necessary for the central bank to be alert and react to the situation.
– Credit Suisse’s balance sheet is well over 500 billion in size, and in relation to that, it is massive. This is an exceptionally strong measure and message to the outside world.
Panic in the banking sector around the world feeds itself
The nervousness of the markets started internationally already at the end of last week, when Silicon Valley Bank, which finances technology companies in the United States, collapsed. Although banks operating on different continents have no direct connection, the resulting panic within the same sector feeds itself.
While distrust in Silicon Valley Bank was linked to increased interest rate risk, Credit Suisse has had problems practically since the 2008 financial crisis.
– At the moment, the market is following particularly closely banks that are generally known to be in a weaker condition, says Ahola.
Credit Suisse’s situation was triggered by the company’s announcement the other day that there are ambiguities in their financial statements. More noise was made yesterday when the largest commercial bank in Saudi Arabia, Saudi National Bank, said that it is no longer increasing its stake in Credit Suisse.
In light of the current information, Ahola does not see any concern regarding the situation of the Nordic banks, as they are relatively well capitalized and their liquidity is at a good level. However, the situation can live quickly.
– In the euro area, attention is focused on a few larger Central European banks and the Italian banking sector. From there, problems can still come to the table.
You can discuss the topic on 17.3. until 11 p.m.