The ongoing confidence crisis in the wake of instability in the global banking system has impacted banking shares across Europe.
European bank shares fall as crisis leaves its mark
Banking shares have slipped in Europe as the instability that surged through the global banking system prompts investors to adjust to more challenging economic and lending conditions ahead.
The Federal Reserve on Wednesday indicated it was on the verge of pausing further increases in borrowing costs after the collapse of two United States lenders earlier this month triggered worries of contagion throughout the banking system.
Fed Chair Jerome Powell said the banking industry stress could trigger a credit crunch with “significant” implications for a slowing US economy.
The turmoil that began in the US spread quickly around the globe, ensnaring one of Europe’s biggest banking names in 167-year-old Credit Suisse AG, which was forced into a shotgun marriage with Swiss peer UBS Group to avert a wider crisis.