Credit Suisse chief executive Tidjane Thiam reassure investors that banking stocks are safe, claiming the current sell-off is "not justified" in the current climate.
Global bank share prices have tumbled in recent weeks, with the likes of Deutsche Bank, Unicredit and Credit Suisse all suffering hugely. UK-listed banks such as Standard Chartered have also sustained a hit to their share price.
But Thiam, who joined Credit Suisse in July from Prudential, claimed his bank was "stronger than ever", dismissing fears that the industry is overstretched.
“The banking system in general is much stronger than in 2008, 2009 [but] there are a lot of memories of that period,” he told the Financial Times. “Some of the scenes we are seeing today are not justified . . . Banks are smaller, they are deleveraged, they are less risky, they are better capitalised.”
His comments follow those of Deutsche Bank boss John Cryan, who yesterday attempted to reassure staff and investors in an open letter claiming the bank was "rock solid". The firm's share price closed down more than six per cent, although it has soared today on the back of reports it is considering launching a bond buyback.