Credit Suisse says it will borrow up to $53.7 bln from central bank

Credit Suisse announced yesterday that it would borrow almost $54 billion from the Swiss central bank to reinforce the group after a plunge in its share prices.

The disclosure came just hours after the Swiss National Bank said capital and liquidity levels at the lender were adequate for a "systemically important bank," even as it pledged to make liquidity available if needed.

In a statement, Credit Suisse said the central bank loan of up to 50 billion francs ($53.7 billion) would "support... core businesses and clients", adding it was also making buyback offers on about $3 billion worth of debt.

"These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders," CEO Ulrich Koerner said 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."

Credit Suisse, hit by a series of scandals in recent years, saw its stock price tumble off a cliff on March 15 after major shareholder Saudi National Bank declined to invest more in the group, citing regulatory constraints.

Its shares fell more than 30 percent to a record low before regaining ground to end the day 24.24 percent down, at 1.697 Swiss francs.

Credit Suisse's market value had already taken a heavy blow this week over fears of contagion from the collapse of two U.S. banks, as well as its annual report citing "material weaknesses" in internal controls.

Analysts have warned of mounting concerns over the bank's viability and the impact on the larger banking sector, as shares of other lenders sank on Wednesday after a rebound the day before.

Credit Suisse is one of 30...