Global banks feel the pain on Monday of the collapsing Silicon Valley Bank and Signature Bank amid plunging share prices in fear of the domino effect from the mess in Wall Street.
All European stocks open lower on Monday, weighed down by the banking sector. British banks, namely; NatWest Group (-3.51%), Lloyds Banking (-3.77%), Standard Chartered (-4.16%) and Barclays (-3.79%). French banks; BNP Paribas (-4.07%) and Societe Generale (-4.02%). Swiss banks; Credit Suisse (-7.57%) and UBS Group (-3.44%), and Dutch bank; ING Groep (-5.27%).
Meanwhile, the originate source of the mess also sees its banking stocks trending downward in after hours trading in the US; First Republic Bank (-60.54%), PacWest (-33.52%), Western Alliance (-24.38%), Bank of America (-5.19%), Citigroup (-1.74%), Goldman Sachs (-1.82%) and JPMorgan (-1.23%).
Thai banks closed lower on Monday with KBANK (-5.88%), KKP (-4.48%), BBL (-3.16%), SCB (-2.68%), BAY (-1.69%), KTB (-1.76%), TTB (-1.45%) and TISCO (-0.99%).
Regulators are rushing to take control of the collapsing banks to protect depositors in an attempt to restore confidence in the banking system.
The Federal Deposit Insurance Corporation’s (FDIC) has taken control of Silicon Valley Bank and Signature Bank, saying that all of the depositors will be made whole.
Meanwhile, the government and the Bank of England approved the private sale of Silicon Valley Bank UK to HSBC this morning. According to British finance minister Jeremy Hunt, the government and the Bank of England enabled the private sale of Silicon Valley Bank’s UK branch to HSBC in order to safeguard deposits without using public funds.