Swiss National Bank President Thomas Jordan said in an interview broadcast on Saturday that Credit Suisse needs to successfully execute its reform and eliminate negative headlines from Switzerland’s second-largest bank.
Credit Suisse in October announced plans to raise capital, reduce its workforce and focus even more heavily on its flagship wealth management franchise, while scaling down volatile investment banking after losses and risk-management failures.
It said the turnaround was well underway after completing a 4 billion Swiss franc ($4.3 billion) capital raise this month.
“It is clear that this kind of restructuring of the bank, restructuring of the business model, is not something that can be done overnight. It takes time, it is a huge challenge for the management and staff of Credit Suisse,” Jordan said. told Swiss broadcaster SRF in an interview.
He reiterated that the successful capital increase was a “milestone” in the bank’s reform that reduced risk and was positive for the stability of the Swiss financial sector.