Credit Suisse Crumbles with $68 Billion in First-Quarter Outflows

Credit Suisse, a 167-year-old banking institution, has seen an unprecedented $68 billion in outflows during the first quarter of 2021. This staggering amount reveals the magnitude of the bank run that ultimately caused its collapse and necessitated state intervention for rescue.

The Swiss government stepped in to help Credit Suisse with a capital injection of 6 billion francs ($7.1 billion) as part of its bailout plan on April 16th this year. The move was intended to stabilize the bank’s balance sheet and provide it with additional liquidity while allowing it to continue operating normally despite massive customer withdrawals over recent months.

The financial crisis at Credit Suisse is indicative not only of how quickly confidence can be lost among customers but also serves as a reminder that even venerable institutions are vulnerable when faced with sudden economic shocks or market volatility – something that we have all experienced recently due to ongoing pandemic uncertainty across global markets and economies alike. As such, banks must remain vigilant about risk management practices to protect themselves from similar crises going forward into recovery mode post-Covid-19 era.