Credit Suisse is borrowing up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank to shore up its liquidity, following a loan offered by the country’s central bank.
Credit Suisse's shares fell 24.24% after Saudi National Bank, its largest investor, said it couldn't provide the Swiss bank with further financial assistance due to regulations.
The banking crisis sparked by Silicon Valley Bank's collapse was not contained, as feared, and investor confidence was shaken.
Saudi National Bank's Chairman, Ammar Al Khudairy, believes that the banking turmoil is isolated, and the panic is unwarranted.
After European banks' dramatic declines on Wednesday, U.S. banking sectors were also affected, with regional banks experiencing a decline, and large banks like JPMorgan Chase, Citigroup, and Goldman Sachs also taking a hit.
Technology stocks, such as Netflix and Alphabet, managed to avoid the banking downturn, and the Nasdaq Composite posted a small gain of 0.05%.
Asian-Pacific markets were battered on Thursday, with banks in South Korea and Australia experiencing steep drops before regaining ground after Credit Suisse's announcement.
Credit Suisse and other European banks are showing a surge in the risk of default indicators, with Credit Suisse's reading reaching levels seen only during the 2008 financial meltdown.