""There is no evidence of any issues with the London-listed core banking names, but investors often have a knee-jerk reaction when problems appear anywhere in the sector," he explained. "In addition to news related to US regional banks, also weighing on sentiment were signs of liquidity pressures in America. "Banks tapped the Federal Reserve's short-term lending facility for more than 15 billion US dollars (£11 billion) over the past two days, the largest amount borrowed over a two-day period since the Covid pandemic.""
""Of themselves, the credit losses announced by two regional banks were limited and seem to be contained. "While there are hopes that this could be an isolated incident, the episode brought back unwelcome memories of the Silicon Valley Bank collapse in 2023 and, with several regional banks yet to report, investors are on high alert. "Indeed, despite there being no obvious read across to the large banks, the reports were enough to put the skids under the sector as a whole,""
Global markets fell sharply as concerns over the stability of US regional banks spread to Europe. The FTSE 100 tumbled while Standard Chartered and Barclays shares dropped more than 5% on Friday morning. The FTSE 250 fell 1.6% and the FTSE dropped 1.5%. The French CAC fell 0.8% and the German DAX slid more than 2%. Banks borrowed more than 15 billion US dollars (£11 billion) from the Federal Reserve's short-term lending facility over two days, the largest two-day amount since the Covid pandemic. Credit losses at two regional banks appeared limited, but investor caution increased and sector-wide losses approached roughly 3%.
Read at London Business News | Londonlovesbusiness.com
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