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

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

By comparison, Europe’s benchmark Stoxx Europe 600 Banks index, which tracks 42 huge EU and UK lenders, fell by a far more 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 difficulties ran specifically deep simply because of several hits to its reputation.

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

Credit Suisse has lost a third of its stock marketplace worth given that the start off of the year, and almost 75% in the previous 12 months, following a string of scandals and poor 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 almost 7.three billion Swiss francs ($7.9 billion), its most significant given that the international monetary crisis in 2008.

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

The bank’s stock has fallen specifically sharply given that Monday, just 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 a lot 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 most likely endgame.

Below this situation, UBS would most likely spin off Credit Suisse’s Swiss business enterprise given that the two banks’ combined marketplace share would make up about 30% of Switzerland’s domestic banking marketplace and imply “also a lot concentration danger and marketplace share handle.”

There are two other paths Credit Suisse could take, the analysts wrote, although they are significantly less most likely.

Firstly, the bank could shutter its investment bank division and raise equity via a partial IPO of its domestic business enterprise.

Secondly, the Swiss National Bank could completely assure all deposits for Credit Suisse’s prospects, or get a portion of its stock. Each solutions would give the bank adequate time to restructure, according to the analysts, but would most likely be unpopular as they would need taxpayer funds.

Credit Suisse could also take into consideration supplying far more shares to current shareholders, according to Johann Scholtz, equity analyst at Morningstar. Though the move would dilute the worth of its stock, it would raise important capital, he wrote in a note Friday.

“Credit Suisse’s liquidity position appears sufficient to manage deposit outflows, and it need to also be in a position to acquire emergency liquidity from the Swiss National Bank,” he mentioned.

“This does, nevertheless, 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 people today with know-how of the matter.

Fears more than the bank’s future have also hit its debt. A single 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 great on its guarantee to spend them back. The expense of purchasing derivatives that insure against the danger of default by the bank — recognized as a credit default swap — surged to an all-time higher Wednesday.