Credit Suisse Group CS Equities have been amid lingering concerns about volatility this week Financial health of the Swiss bank. Now some of the company’s lending customers seem to be pulling out.

What happened: One of Credit Suisse’s lending firms has unwound some stock lending deals in recent days amid concerns over the bank’s financial health Bloomberg.

According to people familiar with the matter, Credit Suisse has alerted borrowing clients that some counterparties have temporarily suspended dealings with the bank due to “increasing market pressures,” which have forced them to withdraw available shares.

Credit Suisse’s credit department reportedly saw less than 5% of the entire pool drawn down and there was no impact on the lender’s funding. The Swiss bank actually only acts as a middleman for securities lending, but the report notes that several investors have approached Credit Suisse to inquire about new risks.

Reports suggesting that Credit Suisse could be struggling with liquidity sent shares of the lender lower Monday morning before reversing and turning positive for the session. The Swiss bank’s credit default swaps, which offer investors financial risk protection and essentially measure how a company’s financial health is perceived by the market, soared record level.

Related link: As Credit Suisse credit default swaps near 2008 levels, rumors of a Lehman-like collapse circulate and the bank steps in to allay concerns

Why it matters: Credit Suisse has faced questions about its risk management practices in the past. The bank has been plagued by a series of scandals, most notably suffering a $5.5 billion loss in the aftermath of the scandal Collapse of the US investment firm Archegos Capital.

In the company’s most recent quarter, Credit Suisse reported a net loss of about $1.6 billion, which it said was down by over $250 million year-on-year Gasoline Pro.

Now Credit Suisse…


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