Credit Suisse admits ‘material weaknesses’ in financial reporting controls

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The bank’s ‘weakness’ was in its capability to design and maintain effective risk assessments in its financial statements, the report stated.

The bank admitted in the report that ‘the group’s internal control over financial reporting was not effective’ and ‘management has also accordingly concluded that our disclosure controls and procedures were not effective.’

Battered by a string of scandals, its customer outflows in the fourth quarter rose to more than $120 billion (almost 110 billion Swiss francs), putting it in breach of some liquidity buffers.

The latest woes for Credit Suisse come amid fears of a banking crisis perpetuated by the concerning health of midsized banks and the collapse of Silicon Valley Bank last week.

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But speaking earlier today, the bank’s CEO Ulrich Koerner looked to quell doubts. ‘Our SVB credit exposure is not material’ he said, while insiders insisted the world’s seventh largest investment bank, headquartered in Zurich, is more highly regulated than SVB in the U.S. and is ‘conservatively positioned against any interest rate risks’.

On Tuesday morning, the bank’s share price fell a further five percent during early trading in Europe, culminating to a record low amid market turmoil.

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