Vahur Kraft: A successful Estonia - in a successful Europe Speech by Mr Vahur Kraft, Governor of Eesti Pank (Bank of Estonia), at the Euro Conference of Eesti Pank, Tallinn, 3 May 2004. *  *  *  This year spring is going to be different, chirp-chirp! Different, this year different… These are the words by Henrik Visnapuu, an Estonian poet, in his third letter to his beloved Ing in May 1919. May has been a month of important events in the history of Eesti Pank. 85 years ago, on 3 May 1919, the first entry regarding the fixed capital of Eesti Pank was made into the general ledger, and the first payment was accepted into the current account. Thus, 3 May 1919 was the actual day the doors of the Bank opened. (By the way, the historical entry into the general ledger can now be viewed at the Museum of Eesti Pank.) Today, on 3 May 2004, Eesti Pank made its first share capital transfer to the European Central Bank. Eesti Pank has become a member of the European System of Central Banks, one of the owners of the European Central Bank. Today, 3 May 2004 is already the third day of being a fully-fledged member state of the European Union. Two out of three Estonian citizens voted for accession to the European Union in the referendum held last September. What is going to happen now? This is largely up to us.
Liquidity is lent against sufficient collateral and is subject to an interest rate that is higher than the policy rate. 2/4  BIS - Central bankers' speeches  SNB's contribution to managing Credit Suisse crisis This brings me to Credit Suisse. Credit Suisse has long struggled to cope with a loss of confidence and with outflows of client funds. The collapse of Silicon Valley Bank in the US triggered a swift deterioration of the situation in mid-March, despite the fact that there was no direct link between the bank in California and Credit Suisse. Credit Suisse's counterparties cut credit limits and clients withdrew deposits at a rapid rate. If Credit Suisse had collapsed, many Swiss households and SMEs would no longer have had access to their deposits, and payments via Credit Suisse would no longer have been executed. Furthermore, SMEs in particular would no longer have been able to benefit from existing credit limits at Credit Suisse and maturing loans would not have been renewed. The economic fallout would have been enormous. But there was even more at stake here. The collapse of Credit Suisse would have sent a shockwave through the global financial system. The consequences for the real economy, both in Switzerland and abroad, would have been dramatic. This extremely demanding situation required quick and decisive action. The federal government, FINMA and the SNB worked together under high-pressure conditions to find a solution that was viable and as market-based as possible in order to safeguard financial stability and protect the Swiss economy.