Credit Suisse shares fell by over 25% to a record low, causing trading in Credit Suisse shares to be automatically suspended on the Swiss market.
The Saudi National Bank, Credit Suisse's biggest shareholder, announced that it would not be injecting more money into the bank due to regulatory restrictions.
SNB already owns a 9.9% stake in the bank, and adding more money would take its ownership above the allowed limit of 10%.
The turbulent situation has hit other European banks as well, as investors fear deeper problems within the world banking system following recent bank failures in the United States.
The share price was down by 20% by midday, causing the European bank stocks index (.
SX7P) to sink to its lowest point since January 3, 2023.
Despite the plunge in share prices, SNB Chairman Ammar al-Khudairy said that he believed Credit Suisse would not require a fresh capital injection.
The media sources differ in their characterisations of events.
While some report that Credit Suisse's woes began "long before" the failure of two US lenders, others state that the announcement triggered new fears about the health of financial institutions following the recent collapses of Silicon Valley Bank and Signature Bank in the United States.
Further, some articles report that SNB does not intend to invest any more money because of regulatory restrictions, while others quote SNB Chairman Ammar al-Khudairy as saying he does not believe Credit Suisse requires a fresh capital injection.