Bank stocks fell heavily across Europe

London (IANS) | Bank shares across Europe fell sharply as concerns grew about the financial soundness of the region, media reports said. Shares in Germany’s Deutsche Bank were the biggest losers, plunging 13 per cent, and the cost of insurance against losses on its loans also saw a sharp jump, the BBC reported.

The collapse of two US banks and the hurried acquisition of Swiss giant Credit Suisse by rival UBS have already spooked investors.

The BBC reported that stock markets in London, Germany and France were all down. Other banks saw steep declines, including Germany’s Commerzbank, down 8 percent, and France’s Societe Generale, which fell 7 percent. In the UK, Barclays and NatWest were both down around 6 per cent, the BBC reported.

Russ Mold, investment director at AJ Bell, said the fall in Deutsche Bank’s share price was indicative of a wider loss of confidence in the banking sector. The fear, he said, is that central banks have reduced it for too long, with interest rates rising.

With recession looming large, banks will generally find it tough. He said investors were pulling money out of regional banks and large investment banks and investing in large traditional banks, the BBC reported.

–IANS