The banking crisis in the United States that reached Europe has increased fears of an economic downturn worldwide. The condition of Credit Suisse Bank, the second-largest bank in Switzerland, is delicate. Its share decreased by 25 percent in a single day.

Nouriel Roubini, one of the top economists in the world, has warned that Credit Suisse could be in serious trouble if it did not raise funds in time. A few individuals, including Roubini, had predicted the 2008 financial crisis accurately.

According to Reuters news agency, the Swiss National Bank has started rescuing Credit Suisse from the deposit crisis. The Swiss National Bank has informed Credit Suisse that it will provide a $54 billion loan. Credit Suisse was the first major global bank to receive emergency lifeline assistance after the 2008 financial crisis. The bank’s problems have raised concerns that central banks’ efforts to fight inflation by increasing interest rates could exacerbate the liquidity crisis.

The bank’s bond value has decreased by 38 percent so far in March. The Bell-in-Bonds, which will mature in 2027, were quoted at 55 cents on the dollar last Wednesday. They were at 72 cents a day earlier and 90 cents at the beginning of March. This drop clearly shows that if the bank goes bankrupt, these bonds will not have much value.

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