Published 10 March 2023 at 15.02
Economics. Banks across Europe have seen their shares fall heavily on Friday following the news that US Silicon Valley Bank is on the verge of collapse.
Share the article
TwitterShare
Silicon Valley Bank, SVB, plummeted by as much as 60 percent on the American stock market on Thursday.
The troubled bank has been forced to sell off its bond holdings at a loss and now needs billions in new capital.
On Friday, the incident left a clear mark on the European stock exchanges, and the Stockholm Stock Exchange has fallen by 2 percent.
It is the banks' shares that fall the most. In Sweden, Swedbank today stands at −5.59 percent. At the same time, Deutsche Bank's share has fallen by as much as 7.75 percent.
The Swedish pension giant Alecta, which is a major shareholder in SVB, lost SEK 6.4 billion on Thursday evening, according to Dagens Industri.
Several US banks fell by double-digit percentages on Thursday, and now the market is anxiously awaiting what will happen when the US stock markets open later this afternoon.