Credit Suisse chairman says Silicon Valley Bank crisis looks 'local and contained'

The contagion effect from the caller illness of Silicon Valley Bank is section and contained, said Credit Suisse Chairman Axel Lehmann connected Wednesday.

Embattled lenders Silicon Valley Bank and Silvergate were not subjected to strict enforcements that govern bigger banks successful the U.S. and different parts of the world, Lehmann told CNBC's Hadley Gamble astatine a sheet league successful Riyadh.

"I look to what has happened successful Silicon Valley Bank, and subsequently different midsize banks — they are not truly taxable to stringent regulation, arsenic you person successful different parts of the world," helium said, citing the Basel III request that underpins astir banks' operating framework.

"So successful this regard, I deliberation [the contagion] is somewhat section and contained," helium said.

However, Silicon Valley Bank's fallout inactive serves arsenic a "warning signal" for the wide marketplace climate, the president cautioned.

European markets closed sharply little Monday amid the fallout from the SVB crisis. On Friday, SVB was taken implicit by regulators aft monolithic withdrawals a time earlier efficaciously created a slope run. HSBC past connected Monday agreed to bargain the British limb of the troubled U.S. tech startup-focused lender for £1. Concerns of contagion and accrued regularisation and conscionable immoderate wide profit-taking caused European banks to station their worst time successful much than a twelvemonth connected Monday.

Credit Suisse, itself, has seen immoderate large volatility during this period, falling different 9% connected Wednesday morning. The Swiss lender on Tuesday revealed that it had identified "certain worldly weaknesses" successful its interior power implicit fiscal reporting for the years 2021 and 2022. It besides precocious confirmed its 2022 results announced Feb. 9, which recorded a full-year nett nonaccomplishment of 7.3 cardinal Swiss francs ($8 billion).

When asked if helium would regularisation retired immoderate benignant of authorities assistance successful the future, Lehmann answered: "That's not the topic." "We are regulated, we person beardown superior ratios, precise beardown equilibrium sheet. We are each hands connected deck. So that's not the taxable whatsoever."

An accent connected de-risking Credit Suisse's equilibrium expanse is besides underway, helium added.

2023 and 2024 are the years for the slope to stabilize, Lehmann said, with a absorption connected planetary wealthiness absorption concern successful Asia, successful the Middle East and successful Latin America.