Year: 2025
Type: article
Abstract: This study examines the collapse of Credit Suisse, a century-old global financial institution, and its implications for banking stability. Through a comprehensive analysis, we identify three core vulnerabilities that contributed to its downfall: reputational damage from repeated scandals, capital erosion due to excessive risk-taking and high operational costs, and strategic mismanagement characterized by erratic decision-making and inadequate risk controls. These weaknesses, compounded by the volatile post-pandemic financial landscape and regulatory gaps, accelerated the bank's demise. We delve into the weaknesses of Credit Suisse that undermined its solvency position, including a tarnished reputation, capital issues, and poor strategic management. Additionally, we explore the current financial environment and its impact on the banking sector. Finally, the article offers targeted recommendations for both banks and regulators to enhance resilience and prevent similar future failures.
Source: DEVELOPMENT ECONOMICS OF CHINA
Author: Yunzhi Lin
Institution: Australian National University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4411795031