The large European banks suffer on the Stock Market this Monday
with falls that exceed 10%
in some cases, and drag down the main European indices due to the
unforeseeable consequences
for the sector that the bankruptcy of the American
Silicon Valley Bank may cause.
and Signature Bank.
On a day without relevant macroeconomic data, fears of a contagion across the banking sector are hogging investors' attention, although analysts believe there is
little chance of it happening.
"We understand that (in Europe) the risks of contagion are more limited as long as we are talking about more diversified entities -not concentrated in a single sector such as
technology-
", indicates the investment manager Renta4 in a market report on Monday .
The German Commerzbank fell 10.2% this Monday.
Photo: Daniel Roland/ AFP
Singular Bank adds that "the prompt and (...) wise joint intervention" of the Federal Reserve (Fed), the Treasury and the FDIC (Federal Deposit Insurance Corporation)
to guarantee deposits
"should serve to reassure investors ".
However, the financial sector has been sinking on the stock market since the opening of the markets and during the morning of Monday the falls had increased in Europe.
The largest decreases were for the French Crédit Agricole, of 14.34%;
the German Commerzbank, 10.2%, as well as the Spanish
Banco Santander, 8.27%, with a significant presence in Latin America.
In Italy, Unicredit lost 7.84%;
and Intesa Sanpaolo, 6.83
The Spanish Banco Santander, with an important presence in Latin America, lost 8.27%.
Photo: Gabrie Bouys/ AFP
The French BNP Paribas left 6.39%;
ING (Netherlands), 6.98%;
and BBVA (Spain), 7.04%.
In the UK, Barclays fell 5.36%;
and HSBC, 4.7%.
The main European stock indices posted
the biggest falls so far this year
, a period that has been characterized by a large stock market appreciation so far.
Milan fell 4.09%;
Madrid, 3.29%;
Frankfurt, 3.18
The trigger for the SVB's intervention was
a lack of liquidity,
which forced it to
sell part of its portfolio of debt bonds
at a loss.
This, in turn, pushed him to announce a failed capital increase to improve his accounting situation for which
he found no funds.
Over the weekend,
Signature Bank was closed
to prevent panic from spreading to other banks and the system as a whole.
EFE
ap
look too
Three lessons from the failure of Silicon Valley Bank
Banking crisis in the United States: Joe Biden spoke and said that Americans can have confidence in the system