AGENCIES
March 16: Credit Suisse announced Thursday that it would borrow up to $53.7 billion from the Swiss central bank as it seeks to calm markets after its shares sank over fears of a global banking crisis, the AFP reported.

According to the French news agency, Switzerland's second biggest bank, already mired in a slew of scandals, has come under pressure this week as the failure of two US regional lenders has rocked the sector.

Hours before European stock markets were due to open, Credit Suisse issued a statement saying it was "taking decisive action to preemptively strengthen its liquidity" by exercising its option to borrow up to 50 billion Swiss francs from the central bank.

It also announced a debt buyback of up to three billion francs.

"These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders," AFP quoted the bank’s CEO Ulrich Koerner as saying in the statement.

"My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs."

According to the BBC, shares in Credit Suisse fell 24% on Wednesday after it said it had found "weakness" in its financial reporting.

Fears of a wider banking crisis sparked steep falls on stock markets, with Asian shares dropping, added the British news agency.

Problems in the banking sector surfaced in the US last week with the shock collapse of Silicon Valley Bank, the country's 16th-largest lender, followed two days later by the failure of New York's Signature Bank, said the BBC, adding, “Swiss National Bank, the country's central bank, insisted Credit Suisse had the money it needed, but stressed it was ready to step in and help further if required.”

Meanwhile, AFP reported that Credit Suisse is one of 30 banks globally deemed too big to fail, forcing it to set aside more cash to weather a crisis.