Stocks officially crashed due to the banking crisis that started in Europe
The bank crisis, which frightened the markets in the USA, has now spread to Europe. Europe's biggest banks are in danger. Shares of banks in Europe fell. The global crisis is at the door.
After the big bank failures in the USA, fluctuations began to be seen in the global markets. Although the crisis in the USA has been overcome for now, a similar crisis has emerged in Europe this time.
The shares of Europe's largest banks began to decline rapidly. The announcement by the Saudi National Bank, one of the biggest partners of the Swiss-based Credit Suisse bank, that it will not increase its capital, officially turned the markets upside down. This news caused great panic in European stock markets. Bank shares fell.
THE BANKING CRISIS HAS ATTACKED EUROPE THIS TIME
After the Saudi National Bank announced that it would not raise capital, there was a big fluctuation in the European stock markets. The shares of Credit Suisse, Switzerland-based and one of the largest banks in Europe, officially crashed.
Circuit breakers were applied in the morning session following the decline in the shares of several Italian banks, including Credit Suisse and Societe Generaate. Experts, on the other hand, stated that the collapse of the SVB in the USA created an uproar and could have knock-on effects. The fact that the shares of many banks, especially Credit Suisse, experienced a serious decline is shown as a result of this effect.
SHARES OF EUROPE'S LARGEST BANK ARE DROPPING
Shares of Credit Suisse, one of the largest in Europe, fell by 25 percent. The bank's share price fell below 2 Swiss francs to an all-time low. The application of circuit breaker after this sharp fall was remarkable.
WHY ARE CREDIT SUISSE SHARES DROPPING
The largest investor in Credit Suisse, one of the leading banks in Europe, is the Saudi National Bank. Saudi National Bank President Ammar Al Khudairy announced that they would not be able to transfer more funds to the bank due to a new liquidity call.
After this development, the Stoxx Europe 600 indicator index in Europe decreased by 2.5 percent and 438.2 points, while the DAX 40 index in Germany lost value by 2.8 percent.
