Mike J. Masoud
March 24, 2025

Introduction

Credit Suisse, a global financial giant with a long-standing history in the banking industry, faced a catastrophic collapse that shocked the financial world. As Duncan Mavin stated in his book Meltdown, “The collapse of Credit Suisse has been decades in the making. The whole of the bank’s troubled history was a prelude to this humbling, humiliating meltdown.” (Guthrie, 2025). As Guthrie reported in the Financial Times, Mavin described the downfall succinctly: “Greed and complacency of bosses destroyed the bank.”(Guthrie, 2025).

This article outlines the primary reasons behind Credit Suisse’s collapse and offers recommendations to prevent similar failures in banks and other organizations. It is intended to be accessible to non-bankers, non-financial individuals, bank management, board members, and leaders of various organizations.

Key Reasons for the Collapse of Credit Suisse

1- Poor Risk Management and Governance Failures

The bank suffered from weak governance structures and inadequate risk management systems, which allowed harmful practices to continue without appropriate oversight. Despite numerous scandals, governing bodies failed to implement effective, long-term solutions. (FINMA, 2023.)

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