The stocks of regional banks fell following the collapse of Silicon Valley Bank and Signature Bank as regulators tried to contain the damage. The Federal Reserve promised an investigation and President Biden urged calm.
Shares of Santander in Spain and Commerzbank in Germany fell by more than 10 percent on Monday morning (13th March)
Hence, the biggest losses have been caused by US banks, the market capitalization of banks in that country dropped by 90 billion or 9 thousand crore dollars. With this, their market capitalization has fallen by 190 billion or 19 thousand crore dollars in the last four days.
Among the US banks, regional banks have suffered the most losses. Shares of First Republic Bank fell more than 60 percent. Even the news that new investments are coming to that bank did not reassure investors. However, Moody’s, the credit rating agency, has a role in this case. Because they are reviewing the credit rating of this bank.
Apart from this, Europe’s stock banking index fell by 5.7 percent and Credit Suisse fell by 9.6 percent. In Asia, Japan’s banking sub-index dotIBNKS dot fell by 6.7 percent.
