Since the beginning of March 2023, the market capitalization of the six largest US banks (Citigroup, Morgan Stanley, Bank of America, Goldman Sachs, JP Morgan Chase and Wells Fargo) has dropped 13%, with credit institutions losing nearly $165 billion. Finance Times.
The publication notes that investors have begun to withdraw money from the securities of credit institutions on a large scale. They fear the tightening of regular surveillance amid the deepening banking crisis.
The publication also says that depositors of credit institutions are concerned that banks’ costs may increase as they will have to pay higher deposit rates to customers, leading to a reduction in profits.
According to analysts of the publication, the sale of shares is unlikely to last, and the current market situation is giving secondary damage to the initial panic due to the collapse of Silicon Valley Bank (SVB).
Previously, it was known that the shares of the largest French banks rose strongly after the results of the transactions made on Wednesday, March 15th. fallen Against the background of the record drop in Credit Suisse.