Deutsche Bank shares fell more than 10 percent on Friday. Germany’s biggest bank came under pressure as the cost of insuring against the risk of insolvency rose sharply, raising fears of a deepening crisis in the banking sector. Deep losses in the morning were also reported by other leading European banks.
At around 11:00 CET, Deutsche Bank shares fell 11.5 percent on the Frankfurt Stock Exchange. Its domestic competitor Commerzbank weakened by 8.5 percent, while in Paris Societe Generale shares fell by 6.72 percent.
Among Austrian banks traded on the Vienna stock exchange, shares in BAWAG lost 6.4 percent. Raiffeisen Bank International (RBI) weakened by almost 5 percent and Erste Group wrote off 4.4 percent.
In addition to recent upheavals in the banking sector, the RBI’s actions have also been influenced by media reports that the European Central Bank is urging the company to submit a plan to withdraw from the Russian market.
In Switzerland, shares of UBS and Credit Suisse AG fell 6.3 percent and 6.7 percent, respectively, after news that the U.S. federal Justice Department was investigating whether the lenders helped Russian oligarchs evade sanctions.
On the broader stock market, the pan-European STOXX 600 index lost 1.5 percent.
Don’t overlook
The United States is investigating Credit Suisse and UBS for anti-Russian sanctions