US regional banks suffered the most. Their KBW index fell 7.7%, the biggest drop since June 2020.
Shares in the global financial sector lost $465 billion in market value in two days as investors trimmed investments in financial institutions around the world after the collapse of US bank Silicon Valley Bank. Bloomberg reported this.
The most significant losses were noted on Tuesday, March 14. The MSCI Asia Pacific Financials Index fell 3.1% to its lowest level since November 29 last year. Mitsubishi UFJ Financial Group Inc. down 8.6% in Japan. South Korean Hana Financial Group Inc. lost 3.9%, while Australian ANZ Group Holdings Ltd. down 1.5%.
The total market value of MSCI World Financials Index and MSCI EM Financials Index companies has fallen by about $465 billion since Friday, March 10.
One of the hardest hit were US regional banks. Their KBW index suffered the steepest decline since June 2020, at 7.7%.
The publication expects the US Federal Reserve to maintain rate hikes to offset the turmoil in the banking system.
Shares of European banks and insurers also fell. Shares of Credit Suisse Group AG fell 15% to a new record low, as the cost of insuring its bonds against default rose to an all-time high.
Recall that on March 10, the US financial regulator closed the California Silicon Valley Bank. His bankruptcy was the largest since the financial crisis of 2008. Following SVB, the American authorities shut down New York Signature Bank.
US President Joe Biden addressed the nation and said that “Americans can rest assured that the banking system is safe.”
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.