#Fiat #Bank #Market #Bankruptcy

Credit Suisse, a Swiss bank providing investment banking and asset management services since 1856, has recently seen a rise in bankruptcy risk. This development is making investors nervous and leading them to consider how the bank's potential downfall could affect the global market.

Credit Suisse has 50,110 employees worldwide and a market capitalization of $7.5 billion, according to its website and data from Companiesmarketcap. Given the recent bank closures in the US and internal issues at Credit Suisse, the increase in bankruptcy risk has heightened market volatility. Stocks of various banks have declined due to widespread mistrust in the banking system, while assets such as gold and Bitcoin have increased in value as they are perceived as safe havens.

If Credit Suisse were to go bankrupt, it could trigger a financial crisis, according to asset strategist Ven Ram. He stated that "the eurozone economy will fall off a cliff, turn the global financial system upside down, and halt the tightening of major central banks' policies."

To put Credit Suisse's magnitude into perspective, the specialist noted that its assets under management last month were nearly CHF 1.3 trillion, which is equivalent to $1.4 trillion. This amount "would be almost 10% of the €14.5 trillion economy of the euro area," he said.

Credit Suisse is deemed systemically important by the US Financial Stability Board, meaning that it is too big to fail since its collapse could trigger a financial crisis. Thus, regulators might save the bank in the event of bankruptcy. The US government covered the uninsured deposits of banks like Silicon Valley Bank and Signature Bank, as reported by CriptoNoticias, thereby calming investors' and depositors' worst fears and averting a financial crisis. However, it is uncertain how the situation could unfold in Europe.

Investors are waiting to see if interest rates will continue to rise aggressively or not. If they do, the crisis could worsen for the banking industry. For now, however, a bankruptcy is not possible, according to Credit Suisse. The bank has said that its capital and liquidity base "are very strong" and "exceed all regulatory requirements."

Ultimately, the situation remains uncertain, and the market is keeping a watchful eye on developments.