August 19, 2011 / 10:54 AM / 7 years ago

UBS, Credit Suisse did not use Fed swap facility

ZURICH (Reuters) - Switzerland’s two biggest banks UBS UBSN.VX (UBS.N) and Credit Suisse CSGN.VX (CS.N) on Friday denied they had made use of the Federal Reserve’s swap facility via the Swiss National Bank.

A worker stands on a ladder under the logo of Swiss bank UBS at the company's headquarters in Zurich May 26, 2011. REUTERS/Arnd Wiegmann

There had been speculation that a Swiss bank had accessed the U.S. liquidity facility via a $200 million repurchase transaction with the SNB the previous week.

“UBS has not made use of the Fed facility through the SNB,” UBS, Switzerland’s largest bank, said in a statement.

“Credit Suisse hasn’t made use of the Swiss National Bank’s U.S. dollar swap facility at the Federal Reserve Board,” Credit Suisse said in a statement. “Our funding and liquidity positions are very strong - in all major currencies and especially in USD.”

The Federal Reserve provided $200 million of liquidity to the Swiss National Bank in the latest week via its swap lines for foreign central banks, the New York Fed said on Thursday.

The SNB was the sole institution to tap the swap lines in the week ended August 17, swapping the full amount.

That was the first time the SNB has tapped the swap lines since they were reopened in May 2010.

The Swiss National Bank has been pumping liquidity into the Swiss franc money market in a bid to weaken the franc. In a sign Swiss franc liquidity is ample, the three-month Swiss franc LIBOR rate fell to a record low on Friday.

By Catherine Bosley and Martin de Sa'Pinto; Editing by Hans-Juergen Peters

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