March 20, 2023

Explainer: At 167 years, that’s how banking became king, now Credit Suisse is on the way to being sold. History of credit suisse in hindi explaining how it achieved the current crisis in 167 years

The day has come for the sale of Credit Suisse, one of Switzerland’s largest and oldest banks. Its own rival bank UBS has been pressured by Swiss regulators to buy Credit Suisse, which has a 167-year history. What is the full timeline?

Alfred introduced Switzerland’s first pension program in 1857.

Image Credit Source: Official Site

When hearing the name of Switzerland, three things come to the mind of common Indians. The first is a Yash Chopra film, the second is India’s people’s black money in Swiss banks and the third is the leaders’ visit to the World Economic Forum in Davos. But these days Switzerland is the talk of the town for other reasons. This is Credit Suisse Bank on the brink of collapse, and now the sell-off numbers are coming.

This bank of Switzerland is not one or two years old, its age is 167 years. Now its rival bank UBS has agreed to buy it, although it has put up a $6 billion guarantee to the government. So the final decision has not been taken yet. After all, how has Credit Suisse’s journey been over the years…

The bank started in 1856

Credit Suisse started in 1856. It was founded by politician and businessman Alfred Asher. (Alfred Escher) Started though it wasn’t called Credit Suisse then, but was Schweizerische Kreditanstalt That is, it was known as the SKA.

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Alfred Escher

Credit Suisse founder Alfred Escher

This bank was established to finance a railway project. Shares worth 3 million francs were then issued, but the public response was such that their value rose to 221 million francs within three days. So far this bank has played a major role in speeding up the industrialization of Switzerland.

Also Read: Credit Suisse-UBS deal: UBS set to take over Credit Suisse, seeks $6 billion guarantee

Switzerland’s first pension program launched

Alfredo launched Switzerland’s first pension program in 1857. This was confirmed by Credit Suisse Fund. In 1863, he founded a reinsurance company. Besides ‘Swiss Life’ and ‘Swiss Re’, he also founded Credit Suisse.

After 1870, the formation of the Global Bank began

The formation of the SKA’s global bank began in 1870 itself. The bank then opened its representative office for the first time on foreign soil i.e. in New York. The bank’s first branch outside of Zurich opened in Basel in 1876.

Credit Suisse Official Char

Credit Suisse New York Office

After that, in 1932, the first Boston Bank was established. It was established as a subsidiary. SKA formed the Swiss American Corporation in 1939. Its focus was on the investment business.

In 1962, SKA acquired the Zurich operations of the American investment bank White Weld. Later, in 1964, it became a full service bank in New York.

See more: The takeover of Silicon Valley Bank will determine the bank’s future today

Listed on the New York Stock Exchange in 1982

In 1982, SKA became the first Swiss bank to be listed on the New York Stock Exchange. At the same time, it formed a sister company, Credit Suisse Holdings, which bought a 45 percent stake in First Boston in 1988. It was renamed CS First Boston. In 1989, Credit Suisse Holding became the parent company of SKU Group.

In 1997, it got the name Credit Suisse Group

Credit Suisse’s new journey began in 1990, when it bought a controlling stake in CS First Boston Bank, a major US investment bank. After that many banks acquired one by one. These include Banque Leu, Foxbank, New Arguer Bank.

Credit Suisse official two

In 1997, Credit Suisse Holdings bid farewell to the SKA name and became the Credit Suisse Group.

In 1997, Credit Suisse Holdings bid farewell to the SKA name and became the Credit Suisse Group. It then also acquired the insurance company Winterthur. After that, Credit Suisse began to play an important role in almost every sector of the financial sector.

Crisis came in March 2023

Credit Suisse’s crisis came in March 2023. The share price of this Swiss bank suddenly fell by 30 percent. This was due to the refusal of Saudi National Bank, the largest shareholder investing in Credit Suisse, to provide further support due to regulatory limits.

However, to save Credit Suisse, Switzerland’s central bank provided a $54 billion credit line. At the same time UBS has also been pressured to take over the bank.

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