Silicon Valley Bank: Global bank stocks slump despite Biden reassurances
Bank shares in Asia and Europe have slumped, despite reassurances from the US president that America’s financial system is safe following the collapse of two US lenders.
The falls come after authorities moved to protect customer deposits when the US-based Silicon Valley Bank (SVB) and Signature Bank collapsed.
Joe Biden promised to do “whatever is needed” to protect the banking system.
But investors fear other lenders may still be hit by the fallout.
On Tuesday, Japan’s Topix Banks share index fell by more than 7%, putting it on course for its worst day in more than three years.
Shares of Mitsubishi UFJ Financial Group, the country’s largest lender by assets, were down by 8.1% in mid-day Asian trading.
On Monday, Spain’s Santander and Germany’s Commerzbank saw their share prices dive by more than 10% at one poin