The health of Switzerland’s financial sector remains intact despite major losses faced by Credit Suisse, according to an IMF executive who shrugged of worries about the Archegos and Greensill debacles.
«Our assessment is that the incidents are not systematic and they remain manageable by Credit Suisse,” according to a «Reuters» report citing IMF mission chief for Switzerland Mark Horton.
«We don’t see this as damaging to Switzerland in a meaningful way either to its financial sector or to the economy as a whole,» he added in the press meeting after the IMF published its report on Switzerland.
Horton was referring to the troubles faced by Credit Suisse which included the $10 billion collapse of Greensill funds and, more recently, the Archegos collapse which has resulted in $4.7 billion of losses.
Actions Taken
According to Horton, Credit Suisse has already taken a number of actions including changes to its management team, dividend cuts and external assessments of recent developments.
Horton also noted that the bank entered the coronavirus pandemic with strong capital and a strong position.
«It is seen as an internal matter that the bank itself needs to address and has begun to do so,» he said, underlining that Credit Suisse had sufficient resources to manage its own problems.
