Finma relief unlocks $90bn of leverage exposure at Credit Suisse
Central bank deposit carve-out is intended to support lending
Credit Suisse freed up CHF 88 billion ($90.4 billion) of leverage exposure in Q1 thanks to temporary relief granted by the Swiss regulator. It could have claimed even more had it not pushed ahead with its dividend plans.
On March 25 Finma, the Swiss watchdog, told banks they could deduct central bank deposits from the calculation of their leverage ratios – defined as Tier 1 capital divided by
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