Troubled bank Credit Suisse faces funding shortfall of as much as £7bn

Troubled bank Credit Suisse is facing a funding shortfall of as much as £7 billion, according to a report by Goldman Sachs.

The Swiss lender will face an ever-widening gap between now and 2024, analysts at the Wall Street giant said.

Financial experts are assessing the bank’s financing needs as they await the announcement of a restructuring plan on Oct. 27.

Investors are urging Credit Suisse to sell assets and reduce its reliance on risky investment banking, which has long been a core part of the 166-year-old group.

The bank’s share price has halved this year.

The Mail on Sunday reported last month that chief executive Ulrich Koerner sent a memo to staff to reassure them about Credit Suisse’s stability after the fall worsened in September. He said the bank had a “strong capital base and liquidity position” and that he had planned “a more focused, agile group.”

But he admitted the bank was at a “critical moment.”

Some analysts have called on the bank to announce its turnaround plan earlier. Broker Keefe, Bruyette & Woods said the asset sale would help raise money, but the group also needed a “decisive” plan to raise money from shareholders, adding that if it didn’t happen, this ” would not be the last restructuring the bank needs’.

Credit Suisse wants to draw a line under a series of cases. It was embroiled in the collapse of lender Greensill Capital and US hedge fund Archegos Capital, admitting last year that it had defrauded investors in the historic Mozambican “tuna bond” loan scandal.