What to know about the Credit Suisse crisis and its global impact

Switzerland’s national flag flies in front of the headquarters of Swiss bank Credit Suisse in Zurich in July. (Arnd Wiegmann/Reuters)
5 min

LONDON — Credit Suisse, a behemoth of European banking with assets stretching across the globe, is experiencing turbulence.

Earlier this week, Credit Suisse disclosed “material weaknesses” in its financial reporting, and it was unclear whether the major bank would be able to get a financial rescue. That sent markets into panic. But a $53.7 billion liquidity lifeline from Switzerland’s central bank appeared to be calming European investors as markets rallied Thursday.

Credit Suisse’s troubles come in the wake of Silicon Valley Bank’s collapse less than a week ago. SVB’s failure, for many people, appeared to come out of nowhere. Two banking crises, just days apart, on two different continents, sparked concern over whether there could be a broader contagion that mirrored the global financial crisis of 2008.

Here’s what you need to know.