London(CNN) Credit Suisse is not out of the woods just however.

Shares in the Swiss lender fell by as substantially as 12% Friday, erasing most of Thursday’s gains, as investors feared that a $54 billion lifeline from the Swiss central bank may not be adequate to rescue the beleaguered bank.

By comparison, Europe’s benchmark Stoxx Europe 600 Banks index, which tracks 42 massive EU and UK lenders, fell by a extra modest three% by mid-afternoon.

Stefan Legge, an economics lecturer at the Swiss-primarily based University of St. Gallen, told CNN that Credit Suisse’s issues ran especially deep for the reason that of various hits to its reputation.

“A bank, extra than any other organization, calls for trust from its prospects, and that trust, that reputation, has been broken time and time once more,” Legge stated. “There is a point when it breaks.”

Credit Suisse has lost a third of its stock market place worth considering that the start out of the year, and practically 75% in the previous 12 months, following a string of scandals and terrible calls by management that have eroded investors’ self-confidence.

Buyers have voted with their feet, withdrawing 123 billion Swiss francs ($133 billion) from Credit Suisse in 2022, largely in the fourth quarter. Final month, the bank reported an annual net loss of practically 7.three billion Swiss francs ($7.9 billion), its largest considering that the international economic crisis in 2008.

Investors have also been ditching Credit Suisse’s funds this week. European and US funds managed by the bank reported extra than $450 million in net outflows among Monday and Wednesday, according to Morningstar Direct information on open-finish and exchange-traded funds.

The bank’s stock has fallen especially sharply considering that Monday, right after the collapse of US lenders Silicon Valley Bank and Signature Bank set alarm bells ringing about banks in other markets.

On Wednesday, Credit Suisse shares crashed as substantially as 30% to hit $1.55 apiece, a new record low.

The stock rebounded 19% Thursday following the bank’s announcement that it would borrow 50 billion Swiss francs ($53.7 billion) from the Swiss central bank “to pre-emptively strengthen its liquidity.”

What now?

According to JP Morgan’s banking analysts, the bumper liquidity injection from the Swiss National Bank is not adequate to retain the bank afloat. In a note on Thursday, they wrote that they saw a takeover by fellow Swiss lender UBS as the most probably endgame.

Below this situation, UBS would probably spin off Credit Suisse’s Swiss organization considering that the two banks’ combined market place share would make up about 30% of Switzerland’s domestic banking market place and imply “as well substantially concentration threat and market place share handle.”

There are two other paths Credit Suisse could take, the analysts wrote, even though they are significantly less probably.

Firstly, the bank could shutter its investment bank division and raise equity by means of a partial IPO of its domestic organization.

Secondly, the Swiss National Bank could totally assure all deposits for Credit Suisse’s prospects, or invest in a portion of its stock. Each choices would give the bank adequate time to restructure, according to the analysts, but would probably be unpopular as they would demand taxpayer funds.

Credit Suisse could also contemplate providing extra shares to current shareholders, according to Johann Scholtz, equity analyst at Morningstar. Even though the move would dilute the worth of its stock, it would raise crucial capital, he wrote in a note Friday.

“Credit Suisse’s liquidity position appears sufficient to deal with deposit outflows, and it need to also be capable to get emergency liquidity from the Swiss National Bank,” he stated.

“This does, having said that, not resolve Credit Suisse’s profitability challenge, nor does it address capital issues.”

Credit Suisse will be holding meetings more than the weekend to assess scenarios for the bank, Reuters reported, citing folks with expertise of the matter.

Fears more than the bank’s future have also hit its debt. 1 of the lender’s bonds, which matures subsequent month, fell three% Friday, to trade at 92% of face worth.

Bondholders are concerned about the bank’s potential to make superior on its guarantee to spend them back. The price of shopping for derivatives that insure against the threat of default by the bank — recognized as a credit default swap — surged to an all-time higher Wednesday.