Global financial stocks lost $465 billion in value due to the collapse of SVB
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Financial stocks around the world lost $465 billion in market value in two days as investors cut back on financial institutions in countries from the United States to Japan following the collapse of SVB Bank.
It is reported Bloomberg.
There are fears that financial firms could feel the impact of the anxiety caused by the bankruptcy of SVB on their investments in bonds and other instruments.
The combined market value of companies included in the MSCI World Financials Index and MSCI EM Financials Index has fallen by about $465 billion since Friday. US regional banks were among the hardest hit on Monday as the KBW Regional Bank Index fell 7, 7%, which was the strongest drop since June 2020.
Losses widened on Tuesday, with the MSCI Asia Pacific Financials Index falling 2.7% to its lowest level since Nov. 29.
Mitsubishi UFJ Financial Group Inc. fell 8.3% in Japan, South Korea’s Hana Financial Group Inc. fell by 4.7%, and Australia’s ANZ Group Holdings Ltd. lost 2.8%.
Treasury yields fell on Monday amid expectations that the US Federal Reserve would refrain from raising rates amid turmoil in the banking system.
Shares of European banks and insurers also fell on Monday. Shares in Credit Suisse Group AG fell 15% to a new record low and the cost of insuring its bonds against default rose to an all-time high amid concerns about wider banking contagion from the collapse of SVB.
Read more: The world is panicking over the collapse of Silicon Valley Bank and fears a new financial crisis. Is everything so serious?
We remind you:
On Monday, one of the largest European banks, the British HSBC redeemed for 1 pound to the local “daughter” of the Silicon Valley Bank, which collapsed a few days earlier.
The Federal Deposit Insurance Corporation and the Federal Reserve are considering the possibility creation of a fund, which would have allowed regulators to keep more deposits in troubled banks after the collapse of Silicon Valley Bank.
Silicon Valley Bank pond the largest U.S. bankruptcy in a decade, after its longtime customer base of tech startups became concerned and began withdrawing deposits.
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