Statement by Christine Lagarde, President of the European Central Bank, on the announcement on 19 March 2023 by the Swiss authorities

Christine Lagarde, President of the European Central Bank, released a statement on 19 March 2023 regarding the announcement made by the Swiss authorities. Lagarde expressed her appreciation for the timely actions and decisions made by the Swiss authorities, which have been crucial in reinstating market stability and financial security.
Lagarde also emphasized the robustness of the banking sector in the euro area, which boasts strong capital and liquidity positions. However, she assured that the policy toolkit of the ECB is fully prepared to provide liquidity assistance to the financial system of the euro area, if needed. Moreover, the ECB is committed to ensuring a seamless transmission of monetary policy.
Of note in this context, on the same day, the Swiss Federal Council supported UBS’s planned takeover of Credit Suisse to strengthen financial market stability. The government is providing additional liquidity assistance from the Swiss National Bank to secure Credit Suisse’s liquidity until the takeover is complete. Measures have been taken to protect financial stability, including bankruptcy privilege rights, a default guarantee for liquidity assistance, and restrictions on remuneration packages. The existing and newly available liquidity assistance from the SNB, together with Credit Suisse’s reserves, are sufficient to secure its liquidity.