Saudi National Bank chair resigns days after Credit Suisse comments sparked panic
The boss of the Saudi National Bank abruptly resigned from his post Monday, just days after his critical comments about Credit Suisse sparked an industrywide panic that resulted in a forced rescue of the troubled lender by rival UBS.
Saudi National Bank Cไhairman Ammar AlKhudairy is stepping down “due to personal reasons,” a press release said without further elaboration.
He had led the bank since 2021.
Saeed Mohammed Al Ghamdi will replace Al𝓀Khudairy as chairman.
AlKhudairy’s resignation came less than two weeks after he rattled the market about Credit Suisse, whose 𒐪troubles had♈ reignited fears of a global banking meltdown.
“The SNB Chairman was a victim of giving his honest opinion at such a tꩵense time for Credit Suisse,” Mohammed Ali ℱYasin, a capital markets specialist and investment advisor, .
The outgoing chairman had declared during a Bloomberg Television appearance that the Sa🔜udi National Bank, Credit Suis🎃se’s biggest shareholder, would not consider pouring more money into the Swiss banking giant.
“The an𒅌swer is absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory,” AlKhudairy said in the March 15 interview.
AlKhudairy later attempted to do damage contr🐬ol, telling CNBC that the panic over Credit Suisse’s potential failure was
Nevertheless, Credit Suisse shaಞres plunged to record lows following AlKh💟udairy’s remarks.
The bank had faced a crisis of confidence among investors after top executives admitted to “material weaknesses” in its financial reporting pract🌟ices over the last two years🔜.
“In hindsight, seeing the ဣbuyout rate of CS🌼 by UBS, his answer was the right course of action: awaiting for the crisis to be clearer.”
The Saudi National Bank is the largest commercial bank in Saudi Arabia. It formed after aꦬ merger of National Commercial Bank 💝and Samba Financial Group.
The Credit Suisse crisis culminated in a government-brokered emergency rescue in which its Swiss banking rival UBS a𒅌greed to a $3.3 billion takeover.
The deal helped to assuage concerns among investors about the overall health of the global banking system, though it was expected to result in tens of thousands of layoffs.
Credit Suisse is on🥂e of several banks under close scrutiny after the collapses of Silicon Valley Bank and Signature Bank of New York prompted concerns about a global contagion event.
Shares of Deutsche Bank rebounded on Monday after fears ease𒁃d that it would be the next banꦫk in need of a rescue.
