Shares of the largest French banks by trade on Wednesday, March 15, fell sharply against the backdrop of a record drop in Credit Suisse. This is evidenced by trade data, transmits France-Press agency.
Shares of the largest French banks in the main CAC-40 index, which reflects the average value of the quotes of the largest companies on the Paris Stock Exchange, fell sharply at the close of Wednesday. Shares of Societe Generale fell the most (12.18%). BNP Paribas (-10.11%) is second in decline. Third place was Credit Agricole, whose shares fell 5.21%.
Market experts believe this is due to the decline in the value of shares of Swiss bank Credit Suiss. In response, the Swiss bank’s shares collapsed due to the bankruptcy of the American Silicon Valley Bank.
Earlier on Thursday, Reuters reported, citing sources. reportedFinancial analysts expect the leadership of the European Central Bank (ECB) to raise the key rate by another 50 basis points (0.5%) from the current 3% to 3.5% annually. The tightening of the currency regulator’s monetary policy will result from the bankruptcy of major US investment bank Silicon Valley Bank (SVB).
Prior to that, Credit Suisse announced that it would borrow 50 billion Swiss francs (approximately $53.7 billion) from the Swiss National Bank (the country’s central bank, SNB). “This additional liquidity will support the bank’s core business and its customers,” the bank said in a statement.