Credit Suisse warns of ‘material weakness’ in financial controls

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(FILES) In this file photo taken on November 8, 2022, a sign of Switzerland’s Credit Suisse bank is seen on an office building in Zurich, March 13, 2023. Credit Suisse shares fell nearly nine percent on March 13, 2023. Hitting a new all-time low, the fallout from the collapse of failed US lender SVB roiled the markets. (Photo by Fabrice Cofrini / AFP) (Photo by Fabrice Cofrini / AFP via Getty Images) – Fabrice Cofrini / AFP via Getty Images

Credit Suisse has identified “material weaknesses” in its reporting and control processes over the past two years scam hit lender,

The Swiss bank said the issues related to its failure to design and maintain effective risk assessments in its financial statements.

In its annual report, it said: “Management did not design and maintain an effective risk assessment process to identify and analyze the risk of material misstatement in its financial statements.”

As a result, for 2021 and 2022, “the Group’s internal control over financial reporting was not effective”.

Credit Suisse was forced to delay the publication of its annual last week Late night phone calls from US regulators Who raised questions about its accounts.

The blunder comes after the Swiss regulator said Monday that the bank was “being closely monitored” after the collapse of the Silicon Valley bank reached high levels of default on its loans.

A new management team has embarked on a drastic overhaul of the beleaguered lender, which has slid from crisis to crisis in recent years after suffering a series of costly mishaps that slashed its value by more than 60pc in the last 12 months alone is tolerating

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Last week the Swiss regulator closed an investigation into comments made by the bank’s chairman in December that the outflow of customers had “basically stopped”. However, in its annual report, Credit Suisse revealed that customer outflows had stabilized at very low levels but had not yet reversed.

FINMA stated that there were not sufficient grounds for supervisory proceedings.

PwC, the bank’s auditors, said on Tuesday that “management did not design and maintain effective controls over the completeness and classification and presentation of non-cash items in the consolidated statements of cash flows”.

Credit Suisse said owners were developing a new plan to address the weakness, which included “strengthening the risk and control framework, and which would build on the significant attention that management has devoted to controls to date.” Is”.

It added: “Additionally, we will apply stronger controls to ensure that all non-cash items are classified appropriately within the consolidated statement of cash flows.”