Credit Suisse Group AG : Credit Suisse Doesn't Plan Capital Increase, CEO Says - Report
06/17/2012| 06:52am US/Eastern
ZURICH--Credit Suisse Group AG (CS) has no plans for a capital increase, the chief executive of Switzerland's second-largest bank says, rejecting as unjustified recommendations by the country's central bank to accelerate efforts to bolster capital in the face of deteriorating financial markets.
"Credit Suisse is one of the safest banks in the world," CEO Brady Dougan told Swiss weekly Sonntagszeitung in an interview Sunday. "Measured in absolute numbers, we have a very strong capital base, ensuring that we remain a very safe bank in times of crisis for savers, clients, and debtors," he said.
In its annual stability report, published Thursday, the Swiss National Bank urged Credit Suisse to strengthen its capital base by issuing new shares and cutting its dividend this year. The central bank's recommendation spooked investors and resulted in a roughly 10% drop in Credit Suisse's shares Thursday.
The SNB's recommendations aren't binding. Banks are regulated by the Financial Market Supervisory Authority, or Finma.
Mr. Dougan also rejected speculation that his position at the helm of the bank weakened in recent months.
"I fully stand behind my duties and believe, that this is also in the best interest of our clients and shareholders. I wan't to complete this task," he said.
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